Read Ethics Case 34.4 on Page 588 in the text and discuss the following questions:

1. Is Gilroy entitled to an accounting? Under what facet of partnership law would he claim such entitlement?

2. Did Conway act ethically in this case?

3. Who wins? Is the outcome fair?

Ethical 34.4 Ethics Case John Gilroy, an estab- his own business, had purchased equipment and sup- lished commercial photographer in Kalam- plies in preparation for opening his own business and azoo, Michigan, had a small contractual clientele of charged them to the partnership, had taken with him schools for which he provided student portrait photo- the partnership's employees and most of its equip- graphs. Robert Conway joined Gilroy's established busi- ment, had personally taken over the business of some ness, and they formed a partnership called "Skylight customers by telling them the partnership was being Studios." Both partners solicited schools with success, dissolved, and had withdrawn partnership funds for and gross sales, which were $40,000, increased every personal use. Gilroy sued Conway for an accounting, year and amounted to over $200,000 6 years later. alleging that Conway had converted partnership assets. Conway notified Gilroy that the partnership was Did Conway act ethically in this case? Who wins? dissolved. Gilroy discovered that Conway had closed Gilroy . Conway, 391 N.W.2d 419, 1986 Mich. App. up the partnership's place of business and opened up Lexis 2633 (Court of Appeals of Michigan)