Limited Partnership Hypo 1

Ch. 37

Rafi formed the Mane Limited Partnership to conduct a horse breeding business.He contributed $85,000 toward capital and received a 1% interest as a general partner and an 84% interest as a limited partner.Maria contributed $15,000 in capital and received a 15% interest as a limited partner.

An employee of Mane committed a tort within the scope of his employment.If the limited partnership cannot pay the $200,000 judgment, what is Rafi's personal liability?

a.$0, because he is a limited partner.

b.$2,000, or 1% of the debt.

c.$85,000, the amount of his capital contribution.

d.$200,000, the full debt.