Seventy-Three Land, Inc., sued Maxlar Partners for the balance due on a note made by the partnership. Max, a partner, asked the court to dismiss the claim against him personally because the plaintiff had not first tried to collect against the partnership. Does Max have a valid claim?

1. In legal terms, Maxlar Partner and the company's partners have _____ liability for the note.

A. severable

B. individual

C. joint and several

D. collective

2. If Max never signed a partnership agreement with the other Maxlar Partners, may he still be held liable for the note obligations?

A. No, because there is no valid partnership

B. No, unless he represented that he was a Maxlar agent

C. Yes, but only if he represented that he was a Maxlar agent

D. Yes, there can be a valid partnership without a written partnership agreement

3. If the court allows Seventy-Three Land to move forward in its case against Max and further finds Max responsible for the note, must Max use his personal assets to pay off the debt?

A. No, in fact it would be improper for Max to do so

B. No, Max may choose to do so but is only obligated to put the salary he earns from the partnership towards the debt

C. Yes, Max is personally liable for the partnership's debts

D. Yes, and Max may be sent to jail for failing to do so Item

4. Is Max's argument valid?

A. Yes, unless he is a managing partner

B. Yes, creditors must exhaust a partnership's assets before seeking recover against a partner personally

C. No, because Max is jointly and severally liable for Maxlar's debts

D. No, unless Max objected to the note at the time Maxlar executed it Item