Amy and Lester are partners in operating a busy hardware store on Main Street in a large town. Without consulting Amy, Lester enters into a contract to purchase $50,000 of merchandise for the store. Amy contends that she did not authorize the order and refuses to pay for it. The vendee sues the partners for the contract price of the merchandise. Partnerships may be combined with other forms of business. Discuss how Amy could have protected herself at the formation of the partnership by addressing the four topics of the partnership agreement, limited liability partnerships, S- corporations, and limited liability companies.
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