I am in a business law class and need some major help with a hypothetical question I was assigned. Please help?
I just need help starting this thing and what direction to go.
Roger Pittard was one of two limited partners in Reliable Construction, a limited partnership that engaged in the business of residential construction. Michael Riley was the sole general partner in the partnership. Because Riley had a poor credit history, he was unable to borrow the money or obtain the credit needed to sustain the partnership’s business. Pittard, who had a personal account with Sawdust Lumber Co., contacted Sawdust’s credit manager and secured an account in the partnership’s name. After the partnership failed to pay the account, Sawdust sued Pittard, alleging that although Pittard was a limited partnerin Reliable Construction, he was responsible for the partnership’s debt underRULPA 303. Pittard argued that, if anything, he was operating within the waters of the “safe harbor” provided by RULPA 303(b)(3), which states that a limited partner does not participate in the control of the partnersip solely by acting as a surety or guarantor for any liabilities incurred by the partnersip. Cab Pittard be held liable for the partnership’s debt to Sawdust?