Zowie was interested in starting a magazine catering to alternative lifestyles. Wanting to avoid the double taxation inherent in the corporate form of carrying on a business but still having the benefits of limited liability, he settled on a limited partnership for carrying on his business. He first incorporated a company, Lifestyles Publishers Inc., and became its controlling shareholder and president. Zowie then formed a limited partnership with Lifestyles as the general partner and himself and two other investors as limited partners. The limited partnership was duly registered. Shortly thereafter, the limited partnership entered into a contract with a printing company, Print Press Inc., to print the magazine. Five issues of the magazine were published and printed and then the limited partnership went into bankruptcy, leaving Print Press unpaid for the printing of three of the issues. Print Press sued Zowie to recover its money.^{44}

44

Is Zowie liable for Print Press's losses? What factors determine his liability? Are Zowie's actions in arranging his business affairs unethical? Explain.