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:

Libido

The energy of the sexual drive as a component of the life instinct.

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, enforcing ethical conduct and societal norms.

Superego

One of the three components of the human psyche in Freudian psychoanalytic theory, representing the moral conscience and the social standards of right and wrong.

Id

A component of Sigmund Freud's psychoanalytic theory, representing the instinctual drives and the source of psychic energy.