Uniform Partnership Act Issues ( Note: Obtain a copy of the Uniform Partnership A...

Uniform Partnership Act Issues

( Note: Obtain a copy of the Uniform Partnership Act of 1997 [UPA 1997] for answering this case question. The UPA 1997 can be obtained from your university’s general library, law library, or the Internet.)

You are in a group that is considering forming a partnership to purchase a coffee shop located near your campus. The coffee shop offers freshly brewed coffee and rolls in the morning and soup and sandwiches the remainder of the day. During your preliminary discussions, several issues have emerged for which your group needs additional information.

Required

Research and provide a written summary for the following:

a. Does every partner in fact have the right to serve as an agent of the partnership and bind the partnership by that individual partner’s actions in carrying out the partnership business?

b. If a new partner is admitted after the partnership operates for a time, what is the new partner’s liability for partnership obligations arising before his or her admission? What is the new partner’s liability for obligations of the partnership incurred after his or her admission?

c. Should all partners be able to examine the accounting records (the partnership’s books) at any time?

d. What happens if the term of the partnership is set at one year and the partners decide to continue doing business? Is a new partnership agreement necessary at that time?

e. What happens if an individual partner wishes to leave the partnership? Can that person just announce to the other partners that he or she no longer wishes to be in the partnership and will not be liable for any future partnership obligations? What are the rights of the other partners in this matter?

f. What items do you believe should be in the partnership agreement prepared before actually agreeing to form the partnership?