MBA05-W3-A3 Dracca sold much of its feeding equipment line to a retailer known as Baby Boutique...

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MBA05-W3-A3 Dracca sold much of its feeding equipment line to a retailer known as Baby Boutique (BB). BB was a partnership formed between friends Beth Brown, Silvia Gray, and Valerie White. BB was behind on its payments and owed Dracca over $500,000 for delivered feeding equipment. Eventually, Dracca sued BB and obtained a judgment for $500,000 in Dracca’s favor. The board of directors for Dracca decided to seek enforcement of the judgment against Silvia Gray, acting on a tip that Ms. Gray had just inherited a large sum of money and that the other partners had no personal assets.
	
Document Preview: MBA05-W3-A3Dracca sold much of its feeding equipment line to a retailer known as Baby Boutique (BB). BB was a partnership formed between friends Beth Brown, Silvia Gray, and Valerie White. BB was behind on its payments and owed Dracca over $500,000 for delivered feeding equipment. Eventually, Dracca sued BB and obtained a judgment for $500,000 in Dracca’s favor. The board of directors for Dracca decided to seek enforcement of the judgment against Silvia Gray, acting on a tip that Ms. Gray had just inherited a large sum of money and that the other partners had no personal assets. As it turned out, Ms. Gray had sufficiently dispersed her inheritance money and did not have the funds to pay the judgment. Dracca incurred substantial attorney fees in attempting to collect its judgment from BB.The accounting manager overseeing the BB account had been with Dracca for 20 years. His name was Martin Long, and he started with the company as a part-time bookkeeper. Long received numerous positive job evaluations over the first 15 years with the company, and he was promoted several times until he reached his current position of accounting manager five years ago. Long and his life partner, Will Short, receive medical, dental, and life insurance benefits as part of Long’s employment package with Dracca.Long reported to the Director of Accounting, Mary Smith, who recently came onboard to Dracca from another company. Smith took away a good portion of Long’s responsibility and froze his pay. She was heard to say, “This company does not need to be burdened with paying for same-sex marriages.” She posted Bible verses in the breakroom and had a screensaver that read, “Marriage is between a Man and a Woman.” Long quit under the new working conditions.One of Long’s subordinates, Kate Katz, reported Long’s treatment to the EEOC.  Kate was an at-will employee who had been with Dracca six years.  In response to the EEOC report, Dracca fired Kate.The sales department was charged with...

David · Accepted Answer

Dracca: Partnership & EEOC
 
Dracca: Partnership & 
EEOC 
 
 
abc 
8/22/2013
Abstract 
This paper deals with understanding of partnership clause with reference to Dracca Inc. a 
company that has recently sued an individual in the retailer firm that partnered Dracca. It also 
deals with understanding the EEOC with reference to recruitment and firing of an employee.  
The paper tries to understand retaliation as observed by EEOC laws. Finally the paper tries to 
understand hiring based on gender discrimination. The paper tries to opinionate the findings from 
each clause and, suggests a remedy for Dracca Inc.
Introduction 
Dracca Inc. is in the news for suing Sylvia Gray, a partner of BB which is a retailer for Draca. It 
is also in the news for the holding discriminative views on an employee’s life and, also for its 
retaliation action. Very recently people have observed Dracca has been observing discrimination.  
The Partnership Clause Regarding Liabilities 
As per the partnership laws and the agency relationship with partnership firms, the liability in a 
partnership firm is unlimited (Angela, 1993). So, in case of any liabilities associated with the 
firm, the partners are jointly and legally answerable to the liability. An act of liability caused by 
individual partners not only binds the firm but also the other partners. In this case, Dracca can 
recover its money from Sylvia Gray if her personal assets are enough to settle the liabilities. AS 
she is the partner of the firm, her assets and property should be used to settle all debt issues for 
the firm. This holds true as per the legal principles too which says that every partner is not only 
the agent of other partners but also for the third party and, hence all liabilities should be sorted 
using personal/official assets.

MBA05-W3-A3 Dracca sold much of its feeding equipment line to a retailer known as Baby Boutique (BB). BB was a partnership formed between friends Beth Brown, Silvia Gray, and Valerie White. BB was...

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