Scott and Clark Spend $50,000 Each to Form a Law

question 145

Multiple Choice

Scott and Clark spend $50,000 each to form a law partnership. On the first 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 passed against the partnership, then each partner will have to pay $50,000.
• B) If a $400,000 judgment is passed against the partnership, and if Clark cannot afford to pay any of it, then Scott is liable for $400,000.
• C) Scott's liability is limited to $300,000 if she owns three-quarters of the firm.
• D) Each individual partner cannot be sued for more than $200,000.
• E) The partner who put the potted plant in the office is personally responsible for the damages.

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