Case Problem with Sample Answer In August 2003, Tammy Duncan began working as a waitress at Bynum’s Diner, which was owned by her mother, Hazel Bynum, and her stepfather, Eddie Bynum, in Valdosta, Georgia. Less than a month later, the three signed an agreement under which Eddie was to relinquish his management responsibilities, allowing Tammy to be co-manager. At the end of this sixmonth period, Eddie would revisit this agreement and could then extend it for another six-month period. The diner’s bank account was to remain in Eddie’s name. There was no provision with regard to the diner’s profi t, if any, and the parties did not change the business’s tax information. Tammy began doing the bookkeeping, as well as waiting tables and performing other duties. On October 30, she slipped off a ladder and injured her knees. At the end of the six-month term, Tammy quit working at the diner. The Georgia State Board of Workers’

Compensation determined that she had been the diner’s employee and awarded her benefi ts under the diner’s workers’

compensation policy with Cypress Insurance Co. Cypress fi led a suit in a Georgia state court against Tammy, arguing that she was not an employee, but a co-owner. What are the essential elements of a partnership? Was Tammy a partner in the business of the diner? Explain. [Cypress Insurance Co. v. Duncan, 281 Ga.App. 469, 636 S.E.2d 159 (2006)]

—After you have answered Problem 27–5, compare your answer with the sample answer given on the Web site that accompanies this text. Go to www.cengage.com/blaw/blt, select “Chapter 27,” and click on “Case Problem with Sample Answer.”