Joe and Sam were in business school together, and after they graduated they decided to open an ice-cream store in a mall. They had skipped the classes in which they were taught about different methods and forms of carrying on business and so gave no thought to how they would structure their relationship. Which of the following is true with respect to the legal positions of Joe and Sam?
◦ Sam and Joe are not in a partnership since they have not specifically agreed to be.
◦ If Sam opens another ice cream store in another mall in a nearby city without telling Joe, he must share any profits he makes with Joe.
◦ If Sam were to find a great deal on anchovy ice cream and purchase 2000 litres of it, only Sam would be liable for the debt incurred as a result of the purchase.
◦ If a customer were injured because of poorly kept food and Sam did not have the assets to pay his half, Joe would only have to pay his half of the damages suffered.
◦ If Sam opens another ice cream store in another mall in a nearby city without telling Joe, Joe would be liable for any losses Sam suffered (along with Sam).
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