After graduating from Vanderbilt University with a degree in economics, James Pettes worked for Video Magic, a

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After graduating from Vanderbilt University with a degree in economics, James Pettes worked for Video Magic, a video rental business. In 1987, Dr. Gordon Yukon, a pediatrician, wanted to invest in a twostore video business called Rent-a-Flick. One store was located on Quince Road and the other in Germantown. Pettes testified that Yukon paid $42,000 for the business and that he and Yukon agreed they would be partners. Pettes would manage the two stores and earn the same amount he earned at Video Magic. Pettes testified that he worked 70 to 80 hours a week and that his "sweat equity" was a capital contribution to the partnership. He also testified that Yukon frequently referred to him as a partner. According to Pettes, in 1992, the parties agreed to divide the business, with the Germantown store going to Yukon and the Quince Road store to Pettes. In December 1992, Pettes made a written demand for an accounting. On January 5, 1993, Dr. Yukon "fired" Pettes. Sutherland, an employee, testified that when she questioned Yukon about firing a partner, Yukon did not deny that there was a partnership but stated that Pettes could not prove there was a partnership because there was no written agreement. Pettes sued for breach of an oral partnership agreement and an accounting. Decide. [Pettes v. Yukon, 912 S.W.2d (Tenn. App.)]
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Andersons Business Law and the Legal Environment

ISBN: 978-1305575080

23rd edition

Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene

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