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Homework answers / question archive / Business Law and Regulations: Answer the following
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.
Question 1: Carol has the authority to purchase the equipment without the consent of Jean or Pat. This is beads on the general partnership rules that states that an agent of the partnership principle may act to bind the partnership as along as it is within the business scope. A general partner has got an implied authority to make purchase for the business absent the partnership agreement. There Carol has implied authority, whether the express of concern or protest of other partners affect his authority, the general rule stats that Carol may make a purchase if it is within the business scope and the majority must agree if there is protest.
Step-by-step explanation
Question 1: Carol has the authority to purchase the equipment without the consent of Jean or Pat. This is beads on the general partnership rules that states that an agent of the partnership principle may act to bind the partnership as along as it is within the business scope. A general partner has got an implied authority to make purchase for the business absent the partnership agreement. There Carol has implied authority, whether the express of concern or protest of other partners affect his authority, the general rule stats that Carol may make a purchase if it is within the business scope and the majority must agree if there is protest.
Question 2: The statement of Jean consists an effective withdrawal from Radiology services. According to partnership rule under partnership act an express and unequivocal statement of intent to withdraw from a partnership will constitute a withdraw. Based on the demands of Jean, the withdraw if effective as she demanded her share of the practices the act which shows that she no longer interested to continue in a partnership and the ongoing share of the business for profit. However, the withdraw will be effective of Jean withdraws in manner which is allowed by the partnership agreement or state law if there is no agreement by writing a written form showing her interest for withdrawal from the partnership. But based on their reaction thereafter of participating in a partnership without Jean it is a sign the the withdrawal was effective.
Question 3: Since Jean has no interest in the firm anymore, she is entitled to get interest of the firm. The debts which are allocated in proportion to the ay profits are shared equally. She is also liable for any debts but may recover some portion of her interests in the property.
Question 4: XYZ will collect the amount of the equipment from both partners that is Carol, Pat and Jean. This is because when the business was creating a debt, there were still together as the partners as and according to the partnership act, the debt created by one partner in a partnership did a business dealing on behalf of other partners meaning that the firm is to pay the debts which at the moment comprised both partners that is Jean, Pat and Carol as per the contract that was signed at XYZ.
