Beatrice Withdrew from a Partnership but Failed to Notify Any

question 35

Multiple Choice

Beatrice withdrew from a partnership but failed to notify any of the other partners except Tom, who did not have an opportunity to notify the other partners. Simultaneous to Beatrice's notifying Tom, Susan, another member of the partnership, made an authorized contract with a third party. Regarding that contract made by Susan, Beatrice is:

• A) not bound because she had withdrawn from the firm.
• B) bound because she failed to notify Susan of her withdrawal.
• C) not bound because withdrawal from the partnership caused its dissolution.
• D) bound because one may not withdraw from a partnership without the consent of one's partners.

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Definitions:

Tying Contract

A requirement imposed by a seller that a buyer purchase another (or other) of its products as a condition for buying a desired product; a practice forbidden by the Clayton Act.

Price-fixing

An illegal agreement among competitors to maintain prices at a certain level, preventing the forces of competition from dictating market prices.

Sherman Act

The federal antitrust law of 1890 that makes monopoly and conspiracies to restrain trade criminal offenses.

Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission (FERC) is a U.S. government agency that regulates the interstate transmission of electricity, natural gas, and oil.