Chapter 31: Operation and Dissolution of General Partnerships, Chapter 31
Chaiken entered into separate but nearly identical agreements with Strazella and Spitzer to operate a barbershop. Under the terms of the “partnership” agreements, Chaiken would provide barber chairs, supplies, and licenses, while the other two would provide tools of the trade. The agreements also stated that gross returns from the partnership were to be divided on a percentage basis among the three men and that Chaiken would decide all matters of partnership policy. Finally, the agreements stated hours of work and holidays for Strazella and Spitzer and required Chaiken to hold and distribute all receipts.
What are the arguments that Strazella and Spitzer are partners with Chaiken?
What are the arguments that Strazella and Spitzer are employees of Chaiken?
Explain which arguments should prevail.
