After Retiring from Jones & Co

question 48

Multiple Choice

After retiring from Jones & Co.,a partnership founded by Megan,Jim Jones,and other partners,Megan grew tired of staying at home and started visiting the firm's place of business.The other partners would introduce her to prospective customers as "My partner,Ms.Jones," or "Our partner,Ms.Jones." Megan did not bother to correct anybody about this.She was introduced in this manner to Tiffany,a new customer.Relying on the idea that Megan was a partner,Tiffany entered into a contract with Jones & Co.If Jones & Co.does not fulfill its obligations,can Megan be held liable?

• A)Under the RUPA,Megan is not liable as she did not make any claims to partnership.
• B)Megan is liable,as she failed to correct the statement when she was being introduced as a partner.
• C)Megan is not liable,but the partner who introduced Megan is liable.
• D)Megan is not liable as she has withdrawn from the partnership agreement by retiring.She is no more an actual partner.

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Definitions:

Trade Agreement

A contract between two or more nations that outlines the rules and guidelines for trade between them.

NAFTA

The North American Free Trade Agreement, a trilateral trade bloc in North America created by Canada, Mexico, and the United States.

United States

is a federal republic in North America comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Ordinance

A piece of legislation enacted by a municipal authority covering matters not already covered by federal or state law.