Instructions: For each chapter discussion board, you will read a set of facts. After reading/reviewing the facts, you will need to give your opinion as to the answer to the legal problem. Your opinion should include:
• what is the legal question
? the conflict you are trying to resolve
• what laws help to answer your legal question
• analysis
? use the content from the chapter materials to fully support your opinion
? apply the law to the facts to make connections
• state your conclusion
Case Problem #9
Dwayne Short, Serkan Gonzaga, and Danny Baker formed a general partnership named "Relo Now," which was a trucking business in Texas. The partners agreed to share equally one-third of the profits and losses of the partnership. Short was the only partner working in the office. In order to conduct partnership business, Short entered into an office equipment lease agreement with IKON Capital Corporation (IKON) for a telephone system, fax machine and photocopier for $577.91 a month. Soon thereafter, the company for which the partnership was acting as a representative had changed its system, thereby preventing the partnership from being capable of operating its business. Short was unable to pay IKON the lease payment, among other debts.
IKON sued Short individually and d/b/a Relo Now (d/b/a is an abbreviation for "doing business as"), claiming a total exceeding $16,000 which included past due payments and accelerated future lease payments. Short negotiated a settlement with IKON for $9,000. Short notified Gonzaga and Baker of the settlement agreement and said they were jointly and severally liable for the $9,000 that extinguished the partnership's debt to IKON, plus attorney's fees. Baker filed bankruptcy, and his debts were discharged in bankruptcy court. Gonzaga, however, refused to pay the debt. Gonzaga claimed he was not legally responsible to reimburse Short for satisfying the debt due to IKON.
