Question: Third Case Study Problem Megan Jones retired last May from her old firm, Jones and Associates, an accounting partnership that she had founded with her

Third Case Study Problem Megan Jones retired last May from her old firm, Jones and Associates, an accounting partnership that she had founded with her brother some twenty years ago. After a year or so at home, Megan grew tired of being out of the loop at the firm. Soon after this, Megan attended an open house event at Jones and Associates one evening. During the event she chatted with her former partners, some clients and several prospective clients who were in attendance. Throughout this event, Megan's former partners introduced her to prospective clients, calling her, "My partner, Ms. Jones," extolling her experience and expertise. Megan said nothing to contradict these statements. Rather, she simply smiled and greeted the prospective clients with social pleasantries and answered questions about herself and her work. Theresa was a prospective client who was introduced to Megan in this manner by several of the firm's partners. Theresa contracted with the firm to do tax work for her business, expressly relying upon Megan's being a partner in doing so and understanding that she would be working on her tax issues. Jones and Associates failed to perform according to the contract the firm had with Theresa. Theresa files a lawsuit against the partners of Jones and Associates and Megan based on their alleged breach of contract. Along with her answer to Theresa's complaint, Megan's attorney files a motion to dismiss her from the lawsuit, stating that she is not a partner to the firm and therefore owes no duty to Theresa. Theresa's attorney files a response, contending that her client reasonably relied upon the partners' representations that Megan was a partner and would be performing work on her tax issues and arguing that she should not be dismissed at this time. Would you grant Megan's motion to dismiss or would you overrule her motion, leaving Megan in the lawsuit at this stage of the case. Please explain the basis for your

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