Ram started a business with his friend, Ching. They ran a computer repair business. Ching found...

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Ram started a business with his friend, Ching. They ran a computer repair business. Ching found clients and advertised their services. Ram went out on calls and did the repair work. Both Ram and Ching were kind people so they donated half of the profits they earned to charity. The rest of the profits were shared equally. Last month, Ram had to attend a family event in India and he was away for a week. Ching got some calls for repairs and he decided to go out and try to do the repairs. Ching had no expertise in repairing computers. He repaired the laptops of Ali and Sam. Both the laptops had minor defects but because of faulty repair, both the laptops exploded and caused property damage worth $10,000 to both Ali and Sam. Furthermore, both laptops were expensive laptops that cost $5,000 each. Advise Ram whether he will also be liable for what has happened in light of the business structure they are operating under. Ram started a business with his friend, Ching. They ran a computer repair business. Ching found clients and advertised their services. Ram went out on calls and did the repair work. Both Ram and Ching were kind people so they donated half of the profits they earned to charity. The rest of the profits were shared equally. Last month, Ram had to attend a family event in India and he was away for a week. Ching got some calls for repairs and he decided to go out and try to do the repairs. Ching had no expertise in repairing computers. He repaired the laptops of Ali and Sam. Both the laptops had minor defects but because of faulty repair, both the laptops exploded and caused property damage worth $10,000 to both Ali and Sam. Furthermore, both laptops were expensive laptops that cost $5,000 each. Advise Ram whether he will also be liable for what has happened in light of the business structure they are operating under.

Answer rating: 100% (QA)

As per the business structure described Ram and Ching are running a partnership where they share the ... View the full answer