In the case Warnick v. Warnick, the Supreme Court of Wyoming reviewed the lower court's calculation of the buyout price for Randall Warnick's interest. The court decided that the buyout price should be based on the amount that would have been paid to the dissociating partner if the partnership assets were sold at a price equal to what?
Explanation
The Warnick case provides a detailed example of how a dissociating partner's interest is valued. The court must determine the fair value of the partnership as if it were being sold on the date of dissociation, considering both its liquidation value and its value as a going concern, and importantly, without deducting hypothetical sales costs if no sale is actually occurring.
Other questions
According to the Uniform Partnership Act (UPA) Section 101(6), a partnership is defined as an association of two or more persons to carry on as co-owners a business for what purpose?
The Uniform Partnership Act (UPA) establishes guidelines for determining if a partnership exists. The sharing of profits and losses from a business creates a presumption that a partnership exists. However, if profits are received as payment for a debt, what does the UPA presume?
If two individuals, MacPherson and Bunker, own a piece of farmland as joint tenants and lease it to a farmer for a share of the profits, what does the Uniform Partnership Act (UPA) state about this arrangement?
For federal income tax purposes, how is a partnership treated?
Under the concept of partnership by estoppel, when does a nonpartner become regarded as an agent whose acts are binding on the partnership?
In a general partnership where the agreement is silent on the matter, what does UPA 401(f) state about management rights?
If Rico contributes $60,000 and Brett contributes $40,000 to a partnership, but their partnership agreement is silent on how profits and losses are to be shared, how will profits and losses be apportioned according to the UPA?
Under the Uniform Partnership Act (UPA), what are the two primary fiduciary duties that a partner owes to the partnership and the other partners?
According to UPA 306(a), how are partners in most states liable for all partnership obligations, including contracts and torts?
What is the extent of liability for a partner newly admitted to an existing partnership regarding obligations incurred before they became a partner?
In a limited partnership, what is the key distinction in liability between a general partner and a limited partner?
What is the major advantage of a limited liability partnership (LLP) that makes it a hybrid form of business?
When a partner ceases to be associated in the carrying on of the partnership business, this event is known as what?
In the case of Warnick v. Warnick, what was the total initial capital contribution made by all partners to form Warnick Ranches?
What is a key difference in formation between a general partnership and a limited partnership?
Under the Revised Uniform Limited Partnership Act (RULPA), what right does a limited partner have regarding lawsuits on behalf of the firm?
What happens to a joint tenancy if one of the joint tenant partners sells their interest in the property to another person?
The Uniform Partnership Act was amended in 1997 primarily to provide for what type of business entity?
What is the consequence for a limited partner in a limited partnership who participates in the management of the business, according to RULPA 303?
When the partnership's liabilities are greater than its assets, how do the partners bear the losses in the absence of a contrary agreement?
What is a 'partnership for a term'?
According to the UPA, what is a partner's duty of care limited to refraining from?
If a partner wrongfully dissociates from the partnership, what are they liable for?
In the case In re Dissolution of Midnight Star Enterprises, L.P., the court had to interpret the partnership agreement regarding dissolution. What did the court conclude about the general partner's option to liquidate the assets?
In a Limited Liability Limited Partnership (LLLP), what is the extent of a general partner's liability?
For how long after a partner dissociates from a continuing partnership may the partnership be bound by the acts of the dissociated partner based on apparent authority?
Which of the following is NOT one of the three essential elements courts look for to determine if a partnership exists?
What does a partner's duty of loyalty require them to refrain from, according to UPA 404(b)?
In the case Moren v. Jax Restaurant, the partnership filed a complaint against Nicole Moren, one of its partners, arguing that it was entitled to what?
What is a 'buy-sell agreement' in the context of a partnership?
In a Limited Liability Partnership (LLP), who is liable for the negligence of a partner?
Under RULPA, the death or bankruptcy of a general partner in a limited partnership will cause the dissolution of the firm unless what occurs?
What is the primary difference in how partnership property is treated under the current UPA versus the previous version of the UPA?
In the context of partnerships, what is a 'charging order'?
What does a Limited Liability Limited Partnership (LLLP) primarily offer that a standard Limited Partnership (LP) does not?
Under the UPA, which of the following actions generally requires the unanimous consent of the partners?
If a partner's dissociation is found to be wrongful because it breached the partnership agreement, what additional liability might that partner face besides damages for the breach?
According to the UPA, in a partnership agreement, which fiduciary duties may not be waived or eliminated?
In a limited partnership, the death of a limited partner does not dissolve the partnership, unless what condition is met?
What is required to form a Family Limited Liability Partnership (FLLP)?
If a court orders the dissolution of a partnership, when might this occur according to UPA 801(5)?
After a partner's dissociation, their right to participate in the management of the partnership business terminates. What happens to their duty of care?
When a limited partner discovers a defect in the formation of the limited partnership, what can they do to avoid future liability?
In the case of Meinhard v. Salmon, the court found that Salmon breached his fiduciary duty to his partner, Meinhard. What specific action constituted this breach?
If a limited partnership agreement does not have a provision for sharing profits and losses, how are they shared among the partners?
What is the consequence if a partner's dissociation occurs in a partnership for a definite term before the expiration of that term?
To form a Limited Liability Partnership (LLP), what is the typical filing requirement?
What is the right of a surviving joint tenant to inherit a deceased joint tenant's ownership interest known as?
A partner's right to inspect all partnership books and records on demand is part of which broader right?