Frank Kolk was the manager of Triples American Grill, a sports bar and restaurant. Kolk and John

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Frank Kolk was the manager of Triples American Grill, a sports bar and restaurant. Kolk and John Baines opened bank accounts in the name of the bar, each signing the account signature cards as “owner.”Baines was often at the bar and had free access to its office. Baines told others that he was “an owner” and “a partner.” Kolk told Steve Mager, the president of Cheesecake Factory, Inc., that Baines was a member of a partnership that owned Triples. On this basis, Cheesecake delivered its goods to Triples on credit. In fact, the bar was owned by a corporation. When the unpaid account totaled more than $20,000, Cheesecake filed a suit in a New Mexico state court against Baines to collect. On what basis might Baines be liable to Cheesecake? What does Cheesecake have to show to win its case?

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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Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

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