1. Edie, Alma, and Tim established a restaurant called EATs. Edie, a retired teacher, invested $20 000 in the venture, and Alma and Tim each invested $10 000. Edie, Alma, and Tim do not have a formal agreement concerning the allocation of responsibilities, but they each take turns doing the cooking. The serving and clean-up tasks are done by staff. One day, while Edie was doing the cooking, Juan got food poisoning from his meal.

1. Identify and explain the type of business arrangement Edie, Alma and Tim are in.

2. Juan intends to sue EATs, Edie, Alma, and Tim for damages of $100 000.

If Juan is successful, how will the damages be allocated among the parties?