[Car Repair] Gordon and Leo Are Partners in SafeT Car

question 37

Multiple Choice

[Car Repair] Gordon and Leo are partners in SafeT Car, a full service automotive repair company. Leo does nearly all of the day-to-day work as Gordon is thinking about retiring. When Leo was moving a customer's car last week, he accidentally collided with the garage door, and the door had to be replaced at a cost of $6,000. Leo recently met with BigBox stores about a potential deal by which BigBox would set up a SafeT Car shop in every BigBox store nationwide. Leo signed an agreement to open a "test" store in one BigBox store. Leo hasn't told Gordon yet, because Gordon hasn't been in the office in a month. Gordon opens The Oil Place, an express oil change company, which he plans to have his sons operate in his retirement. When Leo learns about The Oil Place, he threatens to sue Gordon for breach of duty because Leo is sick of doing all the work at SafeT Car while Gordon was apparently opening a competing business. Gordon tells Leo that he hasn't breached any duty and they don't have a written agreement that restricts Gordon from opening his own store with his sons. Gordon also tells Leo that the $6,000 for the damaged door is coming out of Leo's pocket. Leo, who's thinking about the potential deal about BigBox, tells Gordon he wants to split up the partnership.
-Sonali sues Reta, a partner in B&R Partners, for negligence. The court rules that Reta is liable for negligence, but that the partnership is not liable in any way. Can Sonali sue Reta's partner if Reta does not pay the judgment?

• A) Yes, although the partnership is not liable, the issue of the second partner's liability has not been determined.
• B) No, since the partnership is not liable, Sonali cannot bring a successful claim against a second partner on the issue of the partner's liability.
• C) Yes, unless the partnership agreement dictates otherwise.
• D) No, unless Sonali can prove that Reta does not have the funds to pay the judgment.
• E) Yes, because of estoppel.

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Definitions:

Least Cost Analysis

A method used to minimize costs of achieving a specific objective, commonly used in decision-making for choosing the most cost-effective option.

Short-Run Analysis

An examination of the performance or behavior of a firm or model over a short period, focusing on immediate costs and outcomes.

Cost Center Analysis

The process of evaluating the costs associated with a specific business unit or department, without directly attributing to revenue generation, aiming to optimize efficiency.

Logistics

The detailed coordination and implementation of complex operations involved in the movement, storage, and flow of goods from origin to destination.