of Liverpool, Liverpool, NY. The name of the shop is Floral Designs by Three. Janice and
Rita each contribute $26,000 towards the partnership. Dillon contributes $13,000, but the
partners agree that Dillon possesses expertise in floral design so they are fine with the lower
contribution. All three partners participate in the daily operation of the business. They are all
actively involved in the daily decision-making process, and each partner brings expertise to the
business.
The business is thriving until Covid hits two years later. Janice and Dillon want to close the
business. The challenges seem insurmountable. Rita does not want to close the business. Rita
has offered to buy out Janice's and Dillon's interest in the business based on their original
investment. The current value of the business is $99,000. Rita is willing to pay Janice $33,000
and Dillon $16,500. Dillon does not find this offer acceptable, as she feels she has rights to
$33,000.
Research the following discussion questions using your textbook, lecture notes, and credible
sources on the Internet. SUPPORT ALL YOUR ANSWERS WITH LEGAL RATIONALE. Please
cite all your resources.
1. Describe the legal steps Janice, Rita, and Dillon must take to form this partnership in
Liverpool, New York.
2. Can Janice, Rita, and Dillon be equal partners in this general partnership base on the
unequal investments? Explain
3. Due to the unequal initial investment, should Dillon be considered a "Silent" partner?
Explain why or why not.
4. Is there any additional paperwork that Janice, Rita, and Dillon must file to operate under
the name of Floral Designs by Three? Explain.
5. What rights do each of the partners have when it comes to deciding the on the future of
the business? Explain.
6. Legally, how much money does Dillon legally have a right to? Explain
7. What happens to the partnership if Janice and Dillon are bought out? Explain
8. Is there a better business structure for this type of business? Explain your answer
based on your decision.
Fig: 1