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

question 63

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.
-Is Leo liable to the partnership for the $6,000 repair?

• A) Yes, unless he disclosed the fact of the collision to Gordon within a reasonable time.
• B) Yes, because Leo breached his duty of care in not being careful when moving the car.
• C) No, because the garage door is property of the partnership.
• D) No, as long as the collision was an honest mistake.
• E) No, because the collision occurred on partnership property.

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Definitions:

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The system of government at the national level in a federal state, which has specific powers over matters not delegated to the states.

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