For your discussion, you will review the case scenario and sample answer. Do a written response stating the
opposite perspective of the sample answer.
In 200 words or more, provide a written response that identifies concepts and terms used in the
chapter reading. Similarly, by stating the opposite perspective, give some insight on where your
argument stems from and use concrete examples/citation to support your position.
Case Scenario:
Karyl Paxton asked Christopher Sacco to work with her interior design business, Pierce Paxton Col-lections,
in New Orleans. At the time, they were in a romantic relationship. Sacco was involved in every aspect of the
business—bookkeeping, marketing, and design—but was not paid a salary. He was reimbursed, however,
for expenses charged to his personal credit card, which Paxton also used. Sacco took no profits from the
firm, saying that he wanted to “grow the business” and “build sweat equity.” When Paxton and
Sacco’s personal relationship soured, she fired him. Sacco objected, claiming that they were partners. Is
Sacco entitled to 50 percent of the profits of Pierce Paxton Collections? Explain.
Question: Is Sacco entitled to 50 percent of the profits of Pierce Paxton Collections?
Explain.
Sample Answer:
Yes, Sacco is entitled to 50 percent of the profits of Pierce Paxton Collections, PPDS, and KPD.
The requirements for establishing a partnership are (1) a sharing of profits and losses, (2) a joint
ownership of the business, and (3) an equal right to be involved in the management of the business. The
effort and time that Sacco expended in the business constituted a sharing of losses. His
proprietary interest in the assets of the partnership consisted of his share of the profits, which he
had expressly left in the business to “grow the company” and “build sweat equity” for the future. He was
involved in every aspect of the business. Although he was not paid a salary, he was reimbursed for
business expenses charged to his personal credit card, which Paxton also used. These facts arguably
meet the requirements for establishing a partnership. In the actual case on which this problem is based,
Sacco filed a suit in a Louisiana state court against Paxton, and the court awarded Sacco 50
percent of the profits. A state intermediate appellate court affirmed, based generally on the reasoning
stated above.
Please read carefully, the assignment is to write a 200 word stating the opposite opinion of the sample answer provided below.
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