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Harris, Pendleton, and McRae, certified public accountants, have operated their general partnership accounting firm since the “disco ball and polyester” years of the 1970s. Harris is 68 years old, Pendleton is 66, and McRae is 65. The have operated their partnership by way of an “old-school” approach, a “handshake” agreement, since their professional association was first formed (in spite of strong advice from legal counsel to the contrary.) Harris has been acting rather strange in recent months. Clients and support staff have been asking questions. Six weeks ago, Harris was discovered standing on top of his desk singing the 1970s Rick Dees tune, “Disco Duck,” interspersing quacking sounds throughout his rendition of the disco classic. Harris no longer wears conservative business attire; instead, he has opted for a light blue leisure suit with white patent leather shoes. Currently, he can be found again standing on his desk, this time offering up his version of the 1979 Sister Sledge anthem, “We Are Family.” Pendleton and McRae are in the conference room, considering their options and the future of their accounting business. They would like to terminate Harris’ partnership, but they are unsure whether they have the legal right to do so. They are also struggling with the notion of an ethical obligation to “try to work things out” with Harris; after all, he has been their partner for over thirty years. Finally, they wonder whether they could end their professional relationship with Harris, without being required to dissolve the existing partnership and “wind up” the financial affairs of the business. Advise Pendleton and McRae of their legal rights, as well as their ethical responsibilities.
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