This topic contains a solution. Click here to go to the answer

Author Question: Partners as Fiduciaries. In 1974, Dunay, Weisglass, and Koenig formed a partnership to engage in the ... (Read 47 times)

Caiter2013

  • Hero Member
  • *****
  • Posts: 607
Partners as Fiduciaries. In 1974, Dunay, Weisglass, and Koenig formed a partnership to engage in the brokerage business. They made no capital contributions to the partnership and agreed to share all revenue and expenses on an equal basis. The partnership entered into an agreement with Ladenburg, Thalmann & Co to manage the latter's institutional investors services. The agreement did not provide any specific time limit. Each partner was appointed vice president of Ladenburg. Later, Dunay was appointed president of Ladenburg and was promised an additional share of profits for additional work on a year-to-year basis. Dunay contributed his salary as Ladenburg president and his additional share of profits to the partnership. On April 2, 1979, Weisglass and Koenig told Dunay that they wished to dissolve the partnership and did so immediately, forming their own partnership, W.K. Associates, the same day. Dunay received from the original partnership 15,044, the amount reflected on the partnership's records as his unpaid share of partnership income. Dunay remained with Ladenburg for a short period of time, leaving when the Ladenburg board of directors removed him as president and appointed in his place Weisglass on May 10. Dunay then filed a lawsuit, alleging, among other things, that Weisglass and Koenig had breached their fiduciary duty in dissolving the partnership and forming a new partnership. As part of the suit, Dunay sought some of the profits earned by Weisglass and Koenig after the dissolution. The defendants filed a motion to dismiss Dunay's complaint. In whose favor did the court rule and why? Discuss fully.

Question 2

If an agency relationship did not establish a rate of compensation for the duties of the agent, the principal must pay the customary rate for such services.
 a. True
  b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jackie

  • Sr. Member
  • ****
  • Posts: 324
Answer to Question 1

Partners as fiduciaries
The court found nothing tortious in the actions of Weisglass and Koenig in dissolving the at-will partnership and forming a new partnership. The court recognized that Dunay was entitled to his share of income and assets of the partnership but found that there were no partnership assets to be distributed. On dissolution of the partnership, any fiduciary duty that Weisglass and Koening owed to Dunay ceased. The court ruled that Dunay was not entitled to any of the profits earned by Weisglass and Koenig after the date of dissolution based on their personal ability and services, independent of the dissolved partnership's assets.

Answer to Question 2

TRUE




Caiter2013

  • Member
  • Posts: 607
Reply 2 on: Jun 24, 2018
YES! Correct, THANKS for helping me on my review


Zebsrer

  • Member
  • Posts: 284
Reply 3 on: Yesterday
Gracias!

 

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

For a complete list of videos, visit our video library