Heinz Klein is a mechanic. Bettina Lopez has some money to invest. They agree that Bettina will lend money to Heinz to buy cars at government sales, fix them up and sell them. They will split the profits
Bettina says that she wants to have nothing to do with the operation of the business. They agree that they will not be partners. Which of the following is TRUE?
A) They are not partners because they have specifically agreed not to be partners.
B) They are partners because they are sharing profits from a business on a continual basis.
C) Bettina is a limited partner and will not be liable for partnership debts beyond her investment.
D) The partnership is not registered as a limited partnership so Bettina will be liable for partnership debts.
E) Both B and D
E
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P and S are members of an affiliated group that has filed consolidated tax returns for a number of years. The sale of inventory by P that was acquired from S in an intercompany transaction outside the affiliated group triggers the recognition of gain by S.
Answer the following statement true (T) or false (F)
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Answer the following statement true (T) or false (F)
The Parol Evidence Rule. Glenn Grove bought a 1936 Pontiac from Bernard Stanfield. Stanfield signed the certificate of title, which stated that the car was sold for $1,000. No other terms of sale were mentioned in the certificate, and none were
incorporated by reference. Three years later, Stanfield filed a suit against Grove in a Missouri state court, claiming that Grove still owed $9,000 on the price of the car. At the trial, Stanfield testified that he and Grove had an oral agreement by which Grove was to pay $1,000 for the "title document" and $9,000 for the actual car. The court entered a judgment in Stanfield's favor. What will happen on appeal? Explain.