John Palmer and Henry Morrison formed the limited partnership of Palmer & Morrison for the management of the Huntington Hotel and filed an appropriate certificate in compliance with the limited partnership statute. The limited partnership agreement provided that Palmer would contribute $400,000 and be a general partner and that Morrison would contribute $300,000 and be a limited partner. Palmer was to manage the dining and cocktail rooms, and Morrison was to manage the rest of the hotel. Nanette, a popular French singer, who knew nothing of the limited partnership’s affairs, appeared for four weeks in the Blue Room at the hotel and was not paid her fee of $8,000. Subsequently, the limited partnership became insolvent. Nanette sued Palmer and Morrison for $8,000.
(a) For how much, if anything, are Palmer and Morrison liable?
(b) If Palmer and Morrison had formed a limited liability limited partnership, for how much, if anything, would Palmer and Morrison be liable?
(c) If Palmer and Morrison had formed a limited liability company with each as members, for how much, if anything, would Palmer and Morrison be liable?
(d) If Palmer and Morrison had formed a limited liability partnership with each as general partners, for how much, if anything, would Palmer and Morrison be liable?