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The third group will discuss the concept of dba or doing business as Does a person who uses this designation when signing checks or promissory notes avoid liability on the checks or notes

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Liability of Partners.

 

At least six months before the Summer Olympic Games in Atlanta, Georgia, Stafford Fontenot and four others agreed to sell Cajun food at the games and began making preparations. On May 19, the group (calling themselves "Prairie Cajun Seafood Catering of Louisiana") applied for a business license from the county health department. Later, Ted Norris sold a mobile kitchen to them for $40,000. They gave Norris an $8,000 check drawn on the "Prairie Cajun Seafood Catering of Louisiana" account and two promissory notes, one for $12,000 and the other for $20,000. The notes, which were dated June 12, listed only Fontenot "d/b/a Prairie Cajun Seafood" as the maker (d/b/a is an abbreviation for "doing business as").

On July 31, Fontenot and his friends signed a partnership agreement, which listed specific percentages of profits and losses. They drove the mobile kitchen to Atlanta, but business was disastrous. When the notes were not paid, Norris filed a suit in a Louisiana state court against Fontenot, seeking payment. (See Formation and Operation.)

(a) The second group will determine who can be held liable on the notes and why.

(b) The third group will discuss the concept of "d/b/a," or "doing business as." Does a person who uses this designation when signing checks or promissory notes avoid liability on the checks or notes?

Aug 08 2021 View more View Less

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