MEE Prior Exam Rules

Question 1

For a partnership that is unlimited by time or undertaking, a partner’s dissociation is wrongful when

Answer 1

only when it is a brecach of an express provision of the partnership agreement

Question 2

Is a partner who wrongfully dissociates liable to the partnership and hte other partners?

Answer 2

Yes, for damages caused by the dissociation

Question 3

Can a dissociated partner participate in management or winding up?

Answer 3

Generally no

Question 4

When does wrongful dissociation result in the dissolution of a partnership?

Answer 4

if within 90 days of dissociation, a majority of the remaining partners express a will to wind up the business

Question 5

If a partnership does not dissolve and wind up after dissociation of a partner, is the wrongfully dissociated partner entitled to payment?

Answer 5

No, they are not entitled to any portion of the payout until the expiration of the term or completion of the undertaking

Question 6

When can a wrongfully dissociate partner recieve a payout from the partnership that is still running?

Answer 6

when the partner proves to the court that ealier payment will not cause undue hardship to the business of the partnership

Question 7

What is an at-will partnership?

Answer 7

an open-ended partnership that does not have a fixed termination based on a period of time or a particular undertaking

Question 8

When is an at-will partnership dissolved?

Answer 8

When a partner chooses to dissociate from the partnership by giving notice of his withdrawal

Question 9

If a partner did not wrongfully dissociate, may they participate int he winding up and transfer of partnership property and liabilities?

Answer 9

Yes

Question 10

After a partnership has been dissolved but prior to completion of winding up, can the partnership resume carrying on tis business?

Answer 10

Yes, it can continue to carry on its business as if the dissociation has not occured with consent of all partners (including those properly dissociated) to waive the right to terminate the partnership

Question 11

Does a person winding up the partnership business have the the right to preserve the business or property?

Answer 11

Yes, for a reasonable time to maximize value

Question 12

Regardless of characterization of a partners dissociation, are they liable for the actions taken during winding-up?

Answer 12

Yes