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Jake and Mike decided to go into business together selling T-shirts. Jake was the general partner while Mike was the limited partner. Mike invested $40,000 to help get the business off the ground. Mike loved to play golf every day and was disinterested in management. His only concern was making money and ensuring that the business was profitable. Jake decided to lease an office space in a building near the local mall to capitalize on the busy traffic to hopefully increase sales. Once Mike found out about Jake's decision to lease near the mall, he was outraged! He told Jake that the area was too busy and was not the best option for their t-shirt business. Mike demanded the location be changed to the Plaza near Fifth & Third Street and Jake agreed.
A few weeks later, a customer that purchased a t-shirt from Jake caught poison ivy and sued both Jake and Mike. Please discuss whether Jake, Mike, or both have unlimited personal liability. If so, please clearly articulate their respective liability, if any, applying the applicable law. I.R.A.C.
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