Fact Pattern 32-1
Brad, Carlos, and Dora are general partners in Eastside Physicians, a medical clinic.
-Refer to Fact Pattern 32-1. 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

Fact Pattern 32-1 
Brad, Carlos, and Dora are general partners in Eastside Physicians, a medical clinic.
-Refer to Fact Pattern 32-1. 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.

Quizplus · Accepted Answer

Brad's dissociation from the partnership does not result in the automatic termination of the firm's legal existence or the immediate maturity of all partnership debts. It also does not result in the temporary suspension of the partnership's business. However, under the Uniform Partnership Act (UPA), when a partner dissociates from a partnership, the partnership may buy out the dissociating partner's interest in the firm. Therefore, the partnership's buyout of Brad's interest is the best choice.