Yasmin and Elvis Were Partners

question 20

Multiple Choice

Yasmin and Elvis were partners. Yasmin committed a tort against Patagonia Inc while acting in the course of partnership business. Patagonia suffered a loss of $500 000. It successfully sued and now intends to satisfy judgment by collecting the appropriate amount. Which of the following statements is TRUE?

• A) Patagonia is entitled to collect from Elvis, but only to the amount that represents the value of the assets and services that Elvis has contributed to the partnership
• B) Patagonia can only take assets that qualify as partnership property
• C) Patagonia is entitled to satisfy its judgment against assets personally held by Yasmin, but not against assets personally held by Elvis
• D) If Patagonia collects $500 000 from Yasmin personally, she is entitled to collect that half that amount from Elvis in the absence of an agreement between them that allocates their responsibility differently.
• E) If Patagonia collects $500 000 from Yasmin personally, she is entitled to collect that amount from Elvis.

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Definitions:

Obtaining Cover

The process of seeking alternative goods or services, typically by a buyer in response to a seller's breach of contract.

Resale Price

The amount for which an item is sold again on the market after it has been purchased once from the original seller or manufacturer.

Contract Price

The sum agreed upon by the parties involved in a contract for the sale of goods or services.

Incidental Damages

Compensation for commercially reasonable expenses incurred as a result of the other party's breach of contract.