"Judy, Tom, Bob and Julia form a business to sell a new product they have developed. They plan to share control and profits equally. Judy finds a manufacturer she wants to use for a second product they are developing. However, Bob objects and does not want to sell the new product. The other three outvote Bob and they hire the manufacturer to start production with a contract for $100,000. One month later, Kristi wants to join the business as an equal member, but Bob objects again and again the other three vote to admit Kristi. The next week John wants to join and offers $10,000 to buy in. Everyone agrees and accepts the $10,000. Unfortunately, the next week it turns out Bob was right and the second product is a disaster and the business fails. The only outstanding debt is the $100,000 contract, but no one knows how it is supposed to be repaid. "

"A. How liable (i.e. how much) is Bob for the $100,000 and why, explain completely?"

"B. How liable (i.e. how much) is Judy for the $100,000 and why, explain completely?"

"C. How liable (i.e. how much) is Kristi for the $100,000 and why, explain completely?"

"D. How liable (i.e. how much) is John for the $100,000 and why, explain completely?"