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

question 14

Multiple Choice

Messitt and McNulty 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 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.

---

Definitions:

Personal Wealth

The total value of an individual's assets, including money, property, and investments, minus all debts.

Power

The ability or capacity to do something or act in a particular way, often involving the control over resources or people.

Negative Emotions

Feelings that are generally considered to be displeasing or unfavorable, such as sadness, anger, fear, and guilt, which can impact mental and physical well-being.

Bad News

Information that is unwelcome, unpleasant, or disappointing.