QUESTION 1

Cyndi wants to check with you before she says something to the general partner of the limited partnership in which she is a limited partner. At a conference, she saw some new computer systems that would help the business, and she would like to be able to tell management of the limited partnership about these systems. Because she receives information of this nature regularly, she wonders if she can provide advice to management from time to time. Advise her on this matter.

QUESTION 2

Janet and Jared had a partnership providing bookkeeping services to local businesses under the name of J&J Accounting. Jared had recently incurred some large gambling expenses and owed Elsie, his bookie, a considerable amount of money. Jared offered to work off his debts by providing bookkeeping services to Elsie's legitimate businesses in the evenings and on weekends. Things were working out until Jared made an error in his calculations on Elsie's accounts, which cost her $15,000 to correct.

Elsie called Janet and told her that she would bring an action against J&J Accounting to recover the money that Jared's negligent bookkeeping had cost her unless Janet paid her right away. "Talk to that jerk Jared, it has nothing to do with me!" is all Janet responded to Elsie before slamming the phone down. Elsie sued Janet and Jared as partners of J&J.

Outline and explain the legal implications of this fact situation for Janet and Jared.