Gregory and Dale Stires and Stanley Hall owned and operated the Elk Valley Game Ranch as partners.

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Gregory and Dale Stires and Stanley Hall owned and operated the Elk Valley Game Ranch as partners. Hall bought thirty-eight head of elk from Martin Carelli and signed a promissory note agreeing to pay $36,000. Hall also signed a security agreement identifying the elk as collateral. Both the note and the security agreement referred to Hall but not to the Stireses. The elk were kept at the ranch. After Hall quit the partnership, the Stireses continued to operate the ranch. When the note was not paid, Carelli filed a suit in a Montana state court against Hall and the Stireses. The court ruled in Carelli’s favor. The Stireses appealed, claiming that Hall was personally liable and they were not. What will the appellate court decide? Why?

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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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