Case Problem:
John Palmer and Henry Morrison formed the limited partnership of Palmer & Morrison for the management of the Huntington Hotel. The limited partnership agreement provided that Palmer would contribute $400,000 and be a general partner and that Morrison would contribute $300,000 and be a limited partner. Palmer was to manage the dining and cocktail rooms, and Morrison was to manage the rest of the hotel. Nanette, a popular French singer who knew nothing of the limited partnership affairs, appeared for four weeks in the Blue Room at the hotel and was not paid her fee of $8,000. Subsequently, the limited partnership became insolvent. Nanette sued Palmer and Morrison for $8,000.
a. For how much, if anything, are Palmer and Morrison liable?
b. If Palmer and Morrison had formed a limited liability limited partnership, for how much, if anything, would Palmer and Morrison be liable?
c. If Palmer and Morrison had formed a limited liability company with each as members, for how much, if anything, would Palmer and Morrison be liable?
d. If Palmer and Morrison had formed a limited liability partnership with each as general partners, for how much, if anything, would Palmer and Morrison be liable?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.