Reference no: EM133515754
Address in detail each of the following prompts (1-8), with respect to the provided hypothetical situation. Please provide a detailed response to each prompt that is supported by referenced applicable rule or law.
Fact Scenario. Landon, Malik, and Nell have formed a general partnership to provide restaurant services under the name Via Italia. Although they have a written partnership agreement that states that the partnership will exist until 2025, it fails to address how new partners will be admitted, how profits and losses will be divided, how additional contributions will be made, or how the partnership will be managed. Landon contributed $45,000 to the partnership, Malik contributed $35,000, and Nell contributed $20,000. Unless otherwise instructed, provide both the UPA and RUPA provisions.
1. Must the partnership file a fictitious business name statement?
2. Without the other partners' knowledge or authority, Nell decided to terminate the restaurant's relationship with its wine supplier and to engage a new company to supply wine. Is the partnership bound by this contract?
3. The partnership is considering adding a new member, Olivia. Will such a decision require a majority vote or a greater than majority vote? Discuss.
4. The partnership needs $10,000 in additional funds to repave the restaurant parking lot. How much must each partner contribute to this fund so that the repaving can be done?
5. The partnership owes $40,000 to its chief supplier but has only $20,000 in its accounts. From what sources may this debt be satisfied? Use only the RUPA to determine your answer.
6. At the end of the year, the partnership made a profit of $100,000 (although it intends to place $25,000 into a bank account to replace the carpet at the restaurant next year). How will this profit be divided among the partners? What amount must each partner declare on his or her tax return for the year?
7. The partners intend to amend their partnership agreement to agree to submit any claims among the partners to arbitration. Will such a decision require a majority vote or a greater than majority vote? Discuss.
8. Malik has decided to leave the partnership. May he do so? What is the effect of this departure?