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.

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Definitions:

Cultural Distance

Cultural distance is a concept that measures the difference between two cultures based on certain dimensions, influencing interactions, communications, and relationships.

Negotiations

A process where two or more parties come together to discuss and reach a mutual agreement on a matter.

Tight-loose Cultures

Refer to the degree of rigidity or flexibility in the social norms and behavioral expectations within an organization or society.

Cultural Variability

The range of differences in cultural practices, norms, and values among different societies or social groups.