Homework answers / question archive / Business Law and Regulations: Answer the following

Business Law and Regulations: Answer the following

Management

Share With

---

Business Law and Regulations: Answer the following. NO PLAGIA.

Do not give too long answers. Just short yet concise answer. This is urgent, pls.

Five years ago, three radiologists—Carol, Jean, and Pat—opened a radiology practice together. They agreed to call their business "Radiology Services," to split the profits equally, and to run the practice together in a manner that would be competitive. Toward that end, they purchased state-of-the-art radiology imaging equipment comparable to that of other radiology practices in the community.

 

Four months ago, Carol suggested to Jean and Pat that the practice replace some of the imaging equipment. Jean was worried about overspending on imaging equipment, but she did not express her concern to Carol and Pat. Three months ago, Carol, without discussing the matter further with either Jean or Pat or obtaining their consent, purchased for the practice a Php 42,000,000 state-of-the-art imaging machine from XYZ Company like those recently acquired by other radiology practices in the community.

 

After the purchase but prior to delivery, Jean learned what Carol had done and was furious. Jean did not believe the practice could afford such an expensive machine. When Jean confronted Carol, Carol said, "Too bad, it's a done deal—get over it." At that, Jean responded, "That's it. I've had enough. This machine was purchased without my consent. It's a terrible idea. I'm out of here and never coming back. Just give me my share of the value of the practice." Carol responded, "Fine with me." Carol and Pat subsequently agreed to continue their participation in Radiology Services without Jean.

1. Did Carol have the authority to purchase the imaging machine without the consent of Jean and Pat? Explain.
2. Did Jean's statements to Carol constitute a withdrawal from Radiology Services? Explain.
3. Were Jean's statements sufficient to entitle her to receive a buyout payment from Radiology Services for her interest in the practice? Explain.
4. Can XYZ Company collect the amount of the purchase price from Carol and Pat? Explain.