Question
Mark, Lennie and George are friends who fly model aeroplanes in the weekends at a model aeroplane club. Mark has good technical skills and can
Mark, Lennie and George are friends who fly model aeroplanes in the weekends at a model aeroplane club. Mark has good technical skills and can assemble and repair the model aeroplanes. Lennie is an accountant and has good business skills. George is a happy person who makes friends easily and is good at persuading people to do the kind of things he likes doing. Mark has been assembling and repairing model aeroplanes for other club members in his garage at home. He has to buy spare parts for the repairs and he resells the parts to the club members when the repair is complete. Lennie starts helping him to keep control of the payment of the expenses and the collection of the money. Being an accountant, Lennie persuades Mark to start charging for his time and trouble, and to add some more to his charges so Lennie can get paid for the accounting work.
George hears about this and starts bringing along people from his wide circle of friends to be introduced to model aeroplane flying and to get Mark to assemble their planes for them and to keep them in good repair. George also wants to be paid so that he can buy better aeroplanes for himself and his twin sons. They decide that the easiest way is to increase the fees that Mark is charging and for the three of them to share what is left over after paying for the costs of the parts and a small rental to Mark for the use of the garage. Lennie has discovered a good source of new model aeroplanes in Korea and starts importing them to resell through Marks garage workshop, sharing the markup with the others.
Mark repaired a model aeroplane but when its owner flew it, immediately after getting it back from Mark, it malfunctioned and crashed. The model plane fell into a nearby business premises and damaged some very expensive equipment, belonging to Geek Ltd. Geek Ltd are suing for $300,000 compensation.
If the court action is successful, who would be liable? Support your argument with case and using the Partnership Act
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started