$25$

Multiple Choice

$1$ point

Javier and Piper run a storage unit facility in West Virginia. They have nevere filed any paperwork with the state and operate the business as a general partnership with equal management rights. Unfortunately, it is the nature of the business that often the renters of the units stop paying or abandon the units. Javier and Piper get rid of the abandoned units by having a blind auction $-$ meaning bidders do not get to see what is in the units before bidding. Unbeknownst to Piper, Javier has created an LLC that he uses to bid on the units, after he has toured the units to determine which are valuable. Does Piper have a case for damages against Javier?

Yes, Javier has breached his duties to Piper as a partner.

$20$

No$,$ Javier does not have to disclose the LLC to Piper unless asked directly.

No$,$ partners in a general partnership do not owe each other fiduciary duties.

$21$

No$,$ because Javier is buying the units through the LLC$,$ there is no breach of duty.