CASE PROBLEM WITH SAMPLE ANSWER: Indications of Partnership. In August 2003, Tammy Duncan began…

CASE PROBLEM WITH SAMPLE ANSWER: Indications of
Partnership. In August 2003, Tammy Duncan began working as a waitress at
Bynums Diner, which was owned by her mother, Hazel Bynum, and her stepfather,
Eddie Bynum, in Valdosta, Georgia. Less than a month later, the three signed an
agreement under which Eddie was to relinquish his management responsibilities,
allowing Tammy to be co-manager. At the end of this six-month period, Eddie
would revisit this agreement and could then extend it for another six-month
period. The diners bank account was to remain in Eddies name. There was no

CASE PROBLEM WITH SAMPLE ANSWER: Indications of
Partnership. In August 2003, Tammy Duncan began working as a waitress at
Bynums Diner, which was owned by her mother, Hazel Bynum, and her stepfather,
Eddie Bynum, in Valdosta, Georgia. Less than a month later, the three signed an
agreement under which Eddie was to relinquish his management responsibilities,
allowing Tammy to be co-manager. At the end of this six-month period, Eddie
would revisit this agreement and could then extend it for another six-month
period. The diners bank account was to remain in Eddies name. There was no
provision with regard to the diners profi t, if any, and the parties did not
change the businesss tax information. Tammy began doing the bookkeeping, as
well as waiting tables and performing other duties. On October 30, she slipped
off a ladder and injured her knees. At the end of the six-month term, Tammy
quit working at the diner. The Georgia State Board of Workers Compensation
determined that she had been the diners employee and awarded her benefi ts
under the diners workers compensation policy with Cypress Insurance Co.
Cypress fi led a suit in a Georgia state court against Tammy, arguing that she
was not an employee, but a co-owner. What are the essential elements of a
partnership? Was Tammy a partner in the business of the diner? Explain.
[Cypress Insurance Co. v. Duncan, 281 Ga.App. 469, 636 S.E.2d 159 (2006)] To
view a sample answer for Problem 376, go to this books Web site at
www.cengage.com/blaw/clarkson, select Chapter 37, and click on Case Problem
with Sample Answer.