Messitt and McNulty Spend $50,000 Each to Form a Law

question 92

Multiple Choice

Messitt and McNulty spend $50,000 each to form a law partnership.On thefirst day someone trips over a potted plant in their lobby and sues them for$400,000.Which of the following is true?

• A)If a $400,000 judgment is against the partnership, then each partner will have to pay $200,000.
• B)If a $400,000 judgment is against the partnership and if McNulty cannot afford to pay any of it, then
• Messitt is liable for $400,000.
• C)Messitt's liability is limited to $300,000 because she owns three quarters of the firm.
• D)Each individual partner cannot be sued for more than $200,000.
• E)Only McNulty is personally responsible for the damages because he was the one who put the potted
• Plant in the office.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.

Market Quantity Demanded

Market quantity demanded is the total amount of a good or service that consumers are willing and able to purchase at a given price over a specific period.

Chocolate-Covered Peanuts

A confection made by coating peanuts in chocolate, combining the crunchiness of peanuts with the sweetness of chocolate.

Buyers

Individuals or entities that purchase goods or services in a market.