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8. Chrissie and Mark have formed a partnership under the firm name of Fresh Face, to make and market their own line of natural cosmetics.
8. Chrissie and Mark have formed a partnership under the firm name of "Fresh Face,\" to make and market their own line of natural cosmetics. Each contributed 515,000 in capital, but they needed a further $30,001) to start up. They persuaded Mark's mother and Chrissie's father to contribute $15,000 each as limited partners. The limited partnership was properly registered. Mark's mother, a lawyer; occasionally gave them some free legal advice. Chrissie's father; a plastics manufacturer, advised them on aspects of managing a business, and at one point, found them a better and cheaper packaging supplier through his own industry contacts. Susan, a famous model, tried their products, and became permanently scarred by a piece of glass in one oftheir pots of face cream. Susan decided to sue the partnership business for $1 million in damages. The business has assets of $120,000. Chrissie and Mark each have personal assets of $20,000. Mark's mother has personal assets of $50,000, and Chrissie's father is a millionaire twice oyer. The capital accounts of the partners are still lym each. There are no other creditors. Classification of Law: Parties: Plaintiff: Susan Defendant: Fresh face Court: Case Facts: Plaintiff Defendant Case / Issue: Judgment / Decision: Reasons:1. Regardless of your answer in the above case study about liability. Assume that the business's following parties were liable - Chrissie, Mark, and Chrissie's father, but not Mark's mother. Who would pay Susan's million dollar claim & in what amounts? (5 marks) 2. Would any of the foregoing be different if the limited partnership had not been registered? (1 mark)
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