On February 1, Addison, Bradley, and Carter, physicians, formed ABC Medical Partnership. Dr. Bradley was placed in charge of the partnership's financial books and records. On April 1, Dr. Addison joined the City Hospital Medical Partnership, retaining the partnership interest in ABC. On May 1, ABC received a writ of attachment from the court attaching Dr. Carter's interest in ABC. The writ resulted from Dr. Carter's failure to pay a credit card bill. On June 1, Dr. Addison was adjudicated bankrupt. On July 1, Dr. Bradley was sued by the other partners of ABC for an accounting of ABC's revenues and expenses.
Under the Revised Uniform Partnership Act, which of the preceding events resulted in the dissociation of a partner?
- Dr. Addison joining the City Hospital Medical Partnership.
- Dr. Carter's interest in the partnership being attached by the court.
- Dr. Addison being adjudicated bankrupt.
- Dr. Bradley being sued for an accounting by the other partners of ABC.
Answer(s): C
Explanation:
Choice "c" is correct. The bankruptcy of a partner will result in the dissociation of a partner.
Choice "a" is incorrect, because although joining the city hospital medical partnership could be construed as a breach of fiduciary duty owed to the other partners in ABC medical partnership, standing alone, it would not result in a dissociation.
Choice "b" is incorrect. All that was attached was the partner's right to distributions, which does not cause dissociation.
Choice "d" is incorrect, because although being sued might cause Dr. Bradley to resign, which would cause dissociation, standing alone, being sued by the other partners does not cause dissociation.