Boris, Carina, and Theo have decided to go into business as a limited partnership importing and selling exotic spices. Boris and Carina will manage the business, and Theo will have no role in the day-to-day operations. Boris and Carina have each invested $500,000, and Theo has contributed the building and land that the business will be operated from. Alina, a customer, contracts a rare disease from a contaminated spice sold by the company and sues. Alina is awarded a judgment for $5 million. After she exhausts the assets of the partnership, having the property and building sold, and seizing all other property, $3 million remains unpaid.

Multiple Choice

Boris, Carina, and Theo each owe $1 million, and Alina must sue each for his or her part.

Boris, Carina, and Theo each owe $3 million jointly and severally, so Alina may sue one, two, or all three for the $3 million balance.

Boris and Carina each owe $1.5 million, and Alina must sue each for his or her part; Theo has no additional liability.

Boris and Carina each owe $3 million jointly and severally, so Alina may sue one or both of them; Theo has no additional liability.