Arnold and Benedict agreed to pool their resources and labor and open an ice cream parlor which they called Conezone. Each contributed $50,000 to start the business, but they never entered into any written agreement. Arnold and Benedict shared duties at the shop and always split any profits or losses "right down the middle."

During the second year of operation, Arnold used $3,500 his mother had given him to purchase a used pick-up truck which he titled in his name. The truck was always parked at Conezone, and both Arnold and Benedict used the truck to make deliveries and get supplies.

Recently, Dreamworld, a resort in a neighboring county approached Benedict about providing $25,000 worth of ice cream for a special event. Even though Benedict knew Conezone would be incapable of delivering such a large volume on short notice, he accepted Dreamworld's money and agreed to the deal. Conezone failed to provide any ice cream to Dreamworld.

Arnold learned of the Dreamworld deal only after Conezone failed to deliver the ice cream. When Benedict explained the situation, Arnold exclaimed "I'm through with this business and with you."

QUESTIONS:

1. Discuss the legal relationship, if any, between Arnold and Benedict.

1. Discuss the ownership status of the pick-up truck.

1. Discuss whether Conezone will be liable to Dreamworld concerning the non-delivery of ice cream.

1. Discuss the legal effect, if any, of Arnold's final exclamation to Benedict.