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QUESTION 3 John and Sue have owned and operated a profitable computer shop for a number of years. Without telling Sue, John begins to order

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QUESTION 3 John and Sue have owned and operated a profitable computer shop for a number of years. Without telling Sue, John begins to order large amounts of exotic new components for the shop to improve sales. Sue says that she will not pay for any of the items purchased by John because she did not know about the purchases, and thinks paying for them is 'John's problem. As J appears to be acting in the course of the business and as S is a member of the partnership she will share in any of the losses from the experimentation of the new menu. Partners share losses equally (Partnership Act 1958 (Vic) 28(2)) - unless an agreement to the contrary. Partners are jointly liable for the debts incurred by a partner in the ordinary course of the business. J's conduct in trying to improve the business does appear to be in the ordinary course of the business. Partnership Act 1958 (Vic) ss 9, 13. See paragraph 11.27. QUESTION 3 John and Sue have owned and operated a profitable computer shop for a number of years. Without telling Sue, John begins to order large amounts of exotic new components for the shop to improve sales. Sue says that she will not pay for any of the items purchased by John because she did not know about the purchases, and thinks paying for them is 'John's problem. As J appears to be acting in the course of the business and as S is a member of the partnership she will share in any of the losses from the experimentation of the new menu. Partners share losses equally (Partnership Act 1958 (Vic) 28(2)) - unless an agreement to the contrary. Partners are jointly liable for the debts incurred by a partner in the ordinary course of the business. J's conduct in trying to improve the business does appear to be in the ordinary course of the business. Partnership Act 1958 (Vic) ss 9, 13. See paragraph 11.27

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