Gabriel is a general partner and Lauren is one of several limited partners in a
ID: 416491 • Letter: G
Question
Gabriel is a general partner and Lauren is one of several limited partners in a computer services company called ABC. Lauren finds out that Gabriel has been ignoring new customer requests and calls to replace old computers still under their warranty. Also, he opened a new company that services old computers and provides new software code. He has taken in some new clients as well as some of the old clients from ABC. This has caused the company to lose around $10,000 in profits during the year.
1. What are Gabriel’s duties and has he violated any of them? Can Lauren and the other limited partners vote to remove Gabriel?
Explanation / Answer
Answer:
1.Gabriel's duties:
-To accept new customer requests and build the cutomer base for the ABC company.
-His duty is also to replace the old computers which are under warranty
-Gabriel has to service old computers in case of any call from clients and has to repair and service them in a customer friendly manner
Yes,he has violated all of his duties by ignoring the new customer requests and calls to replace old computers and service them.
Lauren and other limited partners can form a union and vote to remove Gabriel.They can state the reasons to remove Gabriel from their partnership.Their reasons are valid as Gabriel has opened a new company without informing the other partners and he has taken in some new clients as well as some clients from ABC.So he has deceived the ABC company and cheated the others partners which resulted in a loss for ABC company and at the same time has made profits for his own new company
This cheating act of Gabriel has caused ABC company to lose around $10,000.So if Gabriel is not removed from ABC company then he would convert all their clients to his new company that would result in a great loss for ABC company.
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