Jane, Keegan, and Lois are partners in a state that has adopted the RUPA. Jane intends to retire and withdraw from the partnership at the end of the year. Jane is liable to the firm's creditors:
A) for a partnership obligation incurred within two years after dissociation if the partnership did not dissolve and if at the time of entering into the transaction the other party reasonably believed Jane was then a partner.
B) only for all debts incurred prior to her retirement.
C) for an amount not to exceed her initial capital contribution to the partnership.
D) for an amount not to exceed her partnership interest on the day of her retirement.

Question

Quizplus · Accepted Answer

Under the Revised Uniform Partnership Act (RUPA), a partner who dissociates from a partnership (in this case, Jane retiring) is liable for partnership obligations incurred within two years after their dissociation if the partnership has not dissolved and the creditor reasonably believed the dissociated partner was still a partner at the time of the transaction.

Jane, Keegan, and Lois Are Partners in a State That