Lori and Dan Own a Small Restaurant as Partners

question 42

Multiple Choice

Lori and Dan own a small restaurant as partners.Dan works several hours a day cooking,waiting on tables,doing the books,and so forth.Dan believes he is entitled to be paid at least a standard wage for all his work since,at the present time,the part-time kitchen helpers earn more than he does! Lori claims Dan is not entitled to anything other than one-half the net profits.Is Lori right?

• A)Yes.The UPA states a partner may not collect a "wage" from the partnership business under any circumstances.
• B)Yes,if there is no agreement between Lori and Dan allowing for either of them to be paid wages for work done at the restaurant.
• C)No.Dan may collect only minimum wage,as required by federal law.
• D)No.Dan may collect a fair wage for the work he has performed.