Case Study

Over 20 years ago, Marva, Wayne, and Evonnie founded a partnership company that traded vehicle parts. Janice was hired by the partnership three years ago as its manager, and Wayne retired from the partnership last year, to which the partnership threw a send-off celebration. For the following few years, Wayne's name would still continue to be printed on the company's stationery and signs. Since Marva and Evonnie were busy with personal matters, Janice handled the majority of the partnership's day-to-day operations. Despite the fact that this was untrue, Janice started telling people she had a partner. Marva and Evonnie dismissed Janice's representation to customers when they learned about it. She was working quite hard. Janice signed a sizable contract in February of this year with Sparkle Clean, a stalwart client of the partnership's, Sparkle Clean Distributors Ltd.

For the past seven years, the business has dealt with the partnership. Sparkle Clean was pleased to learn that Janice had joined the company as a partner because he considered her to be a very capable and productive worker. Sparkle Clean had worked with Janice for a long time. However, a very disastrous turn of events left the partnership owing Sparkle Clean Distributors more than $2,000,000. (Two Million Dollars). As of right now, the partnership is bankrupt and can only afford to pay $200,000 (two hundred thousand dollars) of the total debt. A number of the partnership's former clients are "carrying the bag" as a result of the partnership's bankruptcy filing. Janice and Wayne object that they aren't business partners.

Required

You are required to advise Sparkle Clean and the other creditors of the partnership as to how they might recover their money or any part of it. You should consider the liability of:

1. The Partnership
2. Wayne
3. Evonnie
4. Marva
5. Janice