Kathleen Roche purchased a consignment store in 2001 and was its sole owner. During that time, Kathleen

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Kathleen Roche purchased a consignment store in 2001 and was its sole owner. During that time, Kathleen ran the business as a full-time on-site owner-manager and was assisted by several unpaid volunteers. Edward Roche, her husband, worked in construction until he was permanently disabled in 2004. Since then, his sole source of income has been Social Security and disability insurance. After he became disabled, Edward drove Kathleen to and from the store each day, but he usually did not stay during working hours. In 2013, Kathleen suffered a debilitating illness that caused her to be intermittently absent from the store until it was finally closed in 2015. When Kathleen could not be present, Edward would open and close the store and remain on the premises. The Roches filed for bankruptcy in 2015. Shortly thereafter, the Commonwealth of Pennsylvania filed suit against the Roches on behalf of consumers who had been damaged by allegedly fraudulent practices of the Roches in operating the store. The Commonwealth holds that Kathleen and Edward operated the store as a partnership. Have the factors for establishing a partnership been met? How did the court rule? 

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Dynamic Business Law

ISBN: 9781260733976

6th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

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