Reference no: EM132057045

Shanetta and Crystal were close friends and always dreamed of filing a limited liability company (LLC) together. Crystal always admired how Shanetta owned her own house, two cars, and a vacation home in Charlotte, North Carolina. Although Crystal didn't have much money or property, their friendship still remained strong. Shanetta decided to allow Crystal to use her vehicle every Tuesday and Saturday to drive to different locations to do hair. One of the primary conditions of the agreement was that Shanetta received twenty dollars flat for every person Crystal served. The agreement was never reduced to writing; however, it produced quite a bit of money to share for both Crystal and Shanetta.

One Saturday, Crystal was doing Lynette's hair when she accidentally caused a second degree burn to her scalp. Lynette began bleeding and screamed in pain! Lynette stormed out to the

• Local hospital to receive treatment for her injuries. Thereafter, she immediately called her attorney to ask whether she could sue Crystal, Shanetta, or perhaps even both of them. Please discuss whether Shanetta and Crystal are general partners. Please also explain the relevance, if any, regarding the limited liability company and how it affects their respective liability. Try to I.R.A.C. your answer to this question. Issue, Rule, Analysis, Conclusion