Liz and Nero run a catering business known as Langhorne Caterers. they agreed that they will share management decisions and will share profits and losses equally, they have an agreement that neither of them will spend more than USD 1000 on equipment for the business without the consent of the other, Liz decides to purchase new oven in the name of the busieness and she is convineced it will improve the quality of their food, the oven cost USD 4500, Nero starts a regular private arrangement, catering for the local art group on sunday afternoons, which he doesnt tell Liz about, he makes significant profits from this venture.
1. discuss the nature of liz and nero business relationship, would they need to register a business name??
2. who will be liable fro the cost of the overn
3.what action can liz take against nero in relation to his private catering agreement
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1. Liz and Nero are operating their business as a partnership and if they are dividing profits and losses equally, they are equal partners. Since they are not using their names as the name of the partnership, they would have to file a Fictitious Name Registration in the State in which they formed their partnership. They would have to obtain a License to do business in their home State as well as in each state they intended to conduct their business.
2. Both Liz and Nero will be liable for the cost of the oven on the legal principle of "Agency". Regardless of any agreement they have among themselves, as between the partnership and third parties, each partner has authority to bind the partnership in transactions with third parties. Therefore, when Liz purchased the oven, the seller looked upon Liz as acting on behalf of the partnership and could rely on her status as partner who had authority to bind the partnership.
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Nero starts a regular private arrangement, catering for the local art group on sunday afternoons, which he doesnt tell Liz about, he makes significant profits from this venture.
the business enjoy great success and Liz and Nero employ three fulltime employees to assist them Daniel, Ivan and Jidi, Daniel is employed as chef but doesnt always turn up to work on time. other employees find him difficult to work with, three months later Liz and Nero fired him without notice.
Daniel is also a talented music composer. he plays an unreleased composition to jidi after work one evening. After hearing the composition, Jidi goes home and composes a piece of music which sounds virtually identical to Daniels especially the chorus, Jidi then sends the music to a distributor in releases it in Europe, Jidi makes a lot of money from the sales of the CD.
This is an entirely new question because it does not ask for any clarification of the Answer I gave you and you have not rated my service to you in your first question,