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Janice, Rita, and Dillon form a general partnership to open a floral design shop in the Village

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