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Wahington & Lincoln ( W&L ) is an accounting firm, which is a general partnership. George and Abe two general partners in W&L . W&L
Wahington & Lincoln W&L is an accounting firm, which is a general partnership. George and Abe two general partners in W&L W&L is near insolvency, meaning that soon it may not be able to meet its financial obligations. George approaches, Bernie, a certified public accountant. George pays Bernie $ to certify fraudulently financial statements for W&L Bernie certifies false financial statements for W&L which enable George, on behalf of W&L to secure a $ loan from Westside Bank. Abe does not know and has no reasonable way of knowing that George secured fraudulent financial statements for W&L Nor does Abe know or have any reasonable way of knowing that George secured the $ loan from Westside Bank. After paying down the loan to $ W&L defaults in paying the remainder of the loan to Westside Bank. Westside Bank sues all the partners of W&L and W&L as an entity, for $
a What, if anything, is Abe's maximum liability to Westside Bank for the $ debt? Do not explain. Simply provide the number. points.
b Suppose that Westside Bank collects $ from George. What, if anything, is Abe's liability to George if George seeks indemnification from Abe? Do not explain. Simply provide the number. points.
c Suppose that Westside Bank sues W&L as an entity and all the partners excluding George, for the $ debt. What, if anything, is Abe's maximum liability for the $ debt? Do not explain. Simply provide the number. points.
d Assume the facts in this question except that W&L is an LLP What, if anything, is Abe's maximum liability for the $ debt? Do not explain. Simply provide the number. points.
e Assume the facts in this question except that W&L is an LLP Also assume that Westside Bank collects from Abe $ of the $ debt. What, if anything, is George's maximum liability to Abe if Abe seeks indemnification from George? Do not explain. Simply provide the number. points.
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