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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 $15,000 in capital, but they needed a further $30,000 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 of their 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 over. The capital accounts of the partners are still $15,000 each. There are no other creditors. Use the standard case analysis template (on next page) to record your answers. Think about the issues before the court, the arguments of the parties and the likely outcome. Approach the case study as if you were the judge make this decision in the court. Remember to use your legal terminology as studied in class. (9 marks)Case Study 2: (9 marks) Classification of Law: Parties: Plaintiff: Defendant Court: Case Facts: Plaintiff Defendant Case / Issue: Judgment / Decision: Reasons: Remedies:Case 2 Questions: 1. Regardless of your answer in the above case studyr about liability. Assume that the business's following parties were liable Chrissie, Mark, and Chrissie's father, but not Mark's mother. Who would paySusan's million dollar claim 8' 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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