Moe, Larry, Curly, and Shemp were general partners. All profits and losses were shared equally among the
Question:
Moe, Larry, Curly, and Shemp were general partners. All profits and losses were shared equally among the 4. The partnership owned a restaurant and, since Moe had the only experience operating a restaurant it was decided that he would be there daily to deal with the kitchen and the diners.
The other 3 would visit and help when needed but Moe was there daily. One day, Mr. Fields walked into the restaurant and soon thereafter he slipped on a banana that was on the floor. He suffered severe injuries. He sued Moe only since Moe was the only person he saw there every day. Mr. Fields received a judgement in court for $1,000,000. Moe calls you for advice. Must he pay Mr. Fields the entire $1,000,000 out of his own pocket? (Forget about insurance)
Why was Mr. Fields able to sue only Moe and not the other partners? What should be the result regarding the payment of the $1,000,000 and why? Explain your answer in detail.
Expert Answer:
Moe should not solely pay the entire amount from his pockets not unless he among the other partners ... View the full answer
