In CASE 19

question 9

Multiple Choice

In CASE 19.2Holmes v.Lerner(1999) ,Lerner (a wealthy entrepreneur) talked to Holmes about setting up a cosmetics business called Urban Decay.Holmes received assurances from Lerner about finances and setting up the business.Later Lerner negotiated a separate deal for Urban Decay without including Holmes,and drafted articles of incorporation which gave Holmes only a one percent interest in Urban Decay.Holmes sued,insisting that even though they had no written agreement,she should have been a full and equal partner.How did the court rule and why??

• A) The court held for Lerner as a full and equal partner, because the oral and written expressions and discussion of profits was a prerequisite to form a partnership.
• B) The court held for Lerner, there was insufficient evidence of intentions to form a partnership.
• C) The court held for Holmes as a full and equal partner, because the oral and written expressions and discussion of profits was a prerequisite to form a partnership.
• D) The court held for Holmes, because under state law, she automatically became a limited partner.

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Definitions:

Sleep Per Night

The total duration of sleep an individual achieves within a 24-hour period, critical for health and wellbeing.

Hours

Units of time equal to 60 minutes, used to measure the duration of events, work, or other activities.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, associated with decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.

Emotions

Complex reactions to internal or external events involving subjective feelings, physiological arousal, and observable behavior.