ABC partnership owns and operates a potato farm in Newark

ABC partnership owns and operates a potato farm in  Newark. A, B, and C are the partners/owners. C is having significant personal financial problems. Savoy Stores has obtained a judgment against C in the amount of $l2,341. Savoy knows that ABC is about to harvest its potatoes. When the ABC potatoes are being transported for processing, Savoy takes one-third of the potatoes to satisfy the debt. A and B object. C claims he is using the partnership property to satisfy a debt. Can C do this?




Anderson is in the process of forming a corporation in order to protect himself from liability in the operation of his construction/development business. The business is incorporated on November 1, 1986. However, Anderson was anxious to get started on a townhouse development. He signed contracts with subcontractors for the project during September and October. Discuss Anderson's liability before and after incorporation.