Messitt and McNulty spend $50,000 each to form a law partnership

ECONOMICS

Multiple Choice

Messitt and McNulty spend $50,000 each to form a law partnership. On the first day someone trips over a potted plant in their lobby and sues them for $400,000. Which of the following is true?

a.If a $400,000 judgment is against the partnership, then each partner will have to pay $200,000.

b.If a $400,000 judgment is against the partnership and if McNulty cannot afford to pay any of it, then Messitt is liable for $400,000.

c.Messitt's liability is limited to $300,000 because she owns three quarters of the firm.

d.Each individual partner cannot be sued for more than $200,000.

e.Only McNulty is personally responsible for the damages because he was the one who put the potted plant in the office.

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