Anderson, Rivera, and Turner are attempting to form a partnership to operate a public relations agency. They have agreed to share profits in a ratio of 4:3:3 but cannot settle on the terms of the partnership agreement relating to possible liquidation. Anderson believes that it is best not to get into any arguments about potential liquidation now because the partnership will be a success and it is not necessary to think negatively now. Rivera believes that in the event of liquidation, any losses should be shared equally because each partner would have worked equally for the partnership's success, or lack thereof. Turner believes that any losses during liquidation should be distributed in the ratio of capital balances at the beginning of any liquidation because then the losses will be distributed based on a capital ability to bear the losses.

Based upon your research using the Uniform Partnership Act of 1997 (UPA 1997), specify the procedures for allocating losses among partners to be used if no partnership agreement terms are agreed upon regarding liquidation. Include summarized citations from the UPA 1997 to support your statements. Wherever possible, you are to specifically connect the standards to the case facts.