Teresa , a dog groomer , is tired of the internal politics at the dog grooming company where she works and has decided to start her own mobile pet grooming service . Sh e purchases an old RV and retrofits it for grooming . Teresa does not hire any employees and pays for everything out of her savings account . She has a grand opening event and within a few weeks has a full roster of clients for her business. Sp Glen and his friend Priya have developed a new condiment, Mouth on Fire Hotsauce , for sale in loc al supermarkets. Glen came up with the idea and developed the recipe , but they agree theyll make the sauc e using Priyas commercial kitchen . Regarding the profits and losses and the management of the company , the only thing to which they explicitly agree is that were in this together. General Partnership Manuel is very good at woodworking and would like to go into business for himself, but he needs some money to get started. His parents are wealthy and want to help him start his business so that he can become independent . They agree to provide the initial investment for him to start his business and agree that they will not take part in any management decisions. Limited Partnership ABC, Ltd., a limited partnership formed under a relatively bare - bone s partnership agreement that left most terms of the state limited partnership statute unmodified, manufactures gaskets for the automobile industry. Jane is ABCs sole general partner and Paula is its sole limited partner. a. On March 1, a carmaker that is one of ABCs chief customers informs ABC of a defect affecting a large batch of gaskets. The customer demands repayment of their value, whereas ABC happens to be sufficiently low on cash at the moment that satisfying the obligation could make the firm insolvent. Alarmed at these events, on March 3 Paula engages a law firm to represent ABC in what seems to be shaping up to be litigation, and she also makes overtures to the car makers executives to try to work out a compromise. If the car maker reduces its claim to judgment, and the value of it exceeds the net value of ABC, Ltd., for how much of the excess are Jane and Paula each liable?