grubbchristina posted a question Oct 21, 2013 at 3:41pm
Fred and Ginger are general partners in a business. They decide to purchase a building for the partnership. Ginger will put up the money for the building, and Fred will complete the remodeling. While inspecting the building, Fred is informed that the building is packed full of asbestos. He fails to tell Ginger of the presence of the substance. They buy the building and go into business. During the remodeling of the building, people from the neighborhood begin complaining about the dust from the building. Some of them even threaten to sue. Who is liable?

Fred is liable because he was put on notice of the presence of the substance. Ginger is not liable because she did not have actual knowledge.

Ginger is liable because she is the one who purchased the building. Fred is not liable, even though he had actual knowledge, because he did not purchase the building.

Neither Ginger nor Fred are liable personally, nor is the partnership, as they did not put the substance in the building.

Both Ginger and Fred are liable, regardless of the circumstances, by virtue of the fact that they are partners.