Fact Pattern 27-1
Brad, Carlos, and Dora are general partners in Eastside Physicians, a medical clinic.
-Refer to Fact Pattern 27-1. Brad's dissociation from the firm results in
A) the automatic termination of the firm's legal existence.
B) the partnership's buyout of Brad's interest in the firm.
C) the immediate maturity of all partnership debts.
D) the temporary suspension of the partnership's business.

Question

Quizplus · Accepted Answer

When a partner dissociates from a partnership, the partnership may either be dissolved or continue with the remaining partners. In this case, Brad's dissociation would result in the buyout of his interest in the firm by the remaining partners (Carlos and Dora), as stated in the partnership agreement. The other options are not accurate as dissociation does not result in automatic termination of the partnership's legal existence or immediate maturity of all partnership debts. The temporary suspension of partnership business may occur if it is necessary to wind up the partnership's affairs before dissolution.

Fact Pattern 27-1 Brad, Carlos, and Dora Are General Partners in Eastside Physicians