1.Shirley Brown and Dora Cowan both wanted to operate a grocery store. Dora owned a small retail building and Shirley had 20 years of retailing experience. Shirley approached Dora to rent her building, and while they were talking about rental rates, Dora said, "Why don't you open a store and we will split the profits." Shirley agreed, opened and ran the store, and paid Dora one-half of the profits on a monthly basis. After two years, a customer, Betty Smith, entered the store and tripped over some packing crates left near the entrance, breaking an arm and a leg. Betty then sued both Shirley and Doraalleging that they were partners. Shirley had not purchased liability insurance to cover such a loss.

a) What defence would Dora have to Betty's action? What might Shirley claim?

b) If Betty is successful, from whom can she collect her judgment?

c) If a partnership is in existence, how can either Shirley or Dora terminate it, and what would happen to the assets of the partnership?