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Case Study: Laila wants to open her own wedding planning business but she is concerned about whether she has enough money to be successful. Laila contacts Amy, who Laila knows has some experience in funding small businesses. Laila and Amy ultimately agree to the following arrangement: (1) Amy will invest $20,000 in the business; (2) the business will focus on planning weddings that cost between $50,000 and $100,000; (3) each person, Laila and Amy, will own a 50 percent interest in the business; (4) Laila will manage the daily operations and Amy will handle the financial books and records; (5) major business decisions will be made by Laila and Amy together as a team, except only Amy is authorized to agree to plan weddings in excess of $100,000; and (6) Laila will get 60 percent of the profits and Amy will get 40 percent of the profits. They put their arrangement in writing and include the following provision: "This business relationship shall not at any time be considered to be a partnership." They name the business "Wonderful Weddings."
Question: Assume that the Revised Uniform Partnership Act (1997) applies. Have Laila and Amy formed a partnership?
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