Partnership assets were not sufficient to pay all claims

Assignment Help Financial Management

Reference no: EM131444668

Liability of General Partners Pat McGowan, Val Somers, and Brent Robertson were general partners of Vermont Place, a limited partnership formed for the purpose of constructing duplexes on an undeveloped tract of land in Fort Smith, Arkansas. The general partners appointed McGowan and his company, Advance Development Corporation, to develop the project, including contracting with materials people, mechanics, and other suppliers. None of the limited partners took part in the management or control of the partnership. Eight months later, Somers and Robertson discovered that McGowan had not been paying the suppliers. They removed McGowan from the partnership and took over the project. The suppliers sued the partnership to recover the money owed them. The partnership assets were not sufficient to pay all their claims. Who is liable to the suppliers? National Lumber Company v. Advance Development Corporation, 293 Ark. 1, 732 S.W.2d 840, Web 1987 Ark. Lexis 2225 (Supreme Court of Arkansas)

Who is liable in that case? Do you agree with the decision?

Reference no: EM131444668

Questions Cloud

What the authors recommended be used for verbiage : After reading what the authors recommended be used for verbiage to ensure accurate health statistics I can see the ways in which someone could be mislead on the outcomes of a medical trial. If only a small portion of a study or trial is relayed a..

Frequency distributions-graphs : The Dean of your school has asked you to organize and present data from a one-question (one-variable) survey to determine students' satisfaction in the social work program. There are 220 students in the program: 55 of them (25 percent) were random..

What is the role of cohesin in the cell : Bio 331 Assignment. How does the list of top 10 predicted gene targets for miR-137 compare to the human list? Use the broadly conserved form for the MiR-137 family (there are two choices for mice!). show the data. What is the role of cohesin in the..

What aspects of a risk assessment do you feel are important : What aspects of a risk assessment do you feel are the most important? Give examples to support your answer and explain your rationale.

Partnership assets were not sufficient to pay all claims : Liability of General Partners Pat McGowan, Val Somers, and Brent Robertson were general partners of Vermont Place, a limited partnership formed for the purpose of constructing duplexes on an undeveloped tract of land in Fort Smith, Arkansas. The part..

How statitic can be used to misrepresent data in advertising : Regina , it is nice the way you explained how statitics can be used to misrepresent data in advertising but also i can add that graphs that are ambiguous or cluttered do not allow clear interpretation of results, which increase chances of misrepre..

Significance level to test the researcher : A researcher claims the proportion of auto accidents that involve teenage drivers is less than20%. ABC Insurance Company checks police records on 200 randomly selected auto accidents and notes that teenagers were at the wheel in 32 of them. Assume..

What evidence can you present to support : What evidence can you present to support the view that secular states, like the U.S., are stronger than religious ones (like those in which the religious leaders govern the country)?

Discuss about the physician communication : Loved the quote from Mark Twain! We have are monthly bullseye graphs at work to show the staff their performance by patient surveys. Taking all things in factor what is this really saying? It is more likely that a dissatisfied patient will respond..

User Account

All Pages