Three men, Dewey, Cheatham, and Howe, form a partnership, DCH Associates.The business will do commercial leasing and run a dry cleaning business.Only the UPA or the RUPA governs the partnership, or common law where neither Act addresses the matter (i.e., the partners have not entered into an agreement that deviates from that law).Discuss the outcome of each scenario, explaining your conclusions.

8) Howe, learning of Cheatham's accusation regarding the chemicals, accuses Cheatham of violating the duty of loyalty.

• Do you think that a court would find that Cheatham violated the duty of loyalty to the partnership? Why or why not?Does your answer differ whether the partnership is governed by the UPA or RUPA, and if so, how?

9) Cheatham spends six months of the next year in jail awaiting trial on the assault charges. Over the course of that year, DCH Associates brings in $300,000 in profit.Dewey and Howe give Cheatham $50,000, and they take $125,000 each.

1. Cheatham sues, claiming that the profits must be divided equally. Will Cheatham win his lawsuit?Does your answer differ whether the partnership is governed by the UPA or RUPA, and if so, how?
2. Dewey and Howe argue that they are entitled to an extra $25,000 each as salary for the extra work they had to put in running the business without Cheatham. Will the court agree?Does your answer differ whether the partnership is governed by the UPA or RUPA, and if so, how?

Although the business has been profitable, Dewey and Howe conclude that it is too risky to continue running the business with Cheatham.

10) Dewey and Howe consider selling the location.

• Can the property be sold without Cheatham's permission? Does your answer hinge on whether Dewey and How agree to split the proceeds with Cheatham?Does your answer differ whether the partnership is governed by the UPA or RUPA, and if so, how?