Which of the following describes the consequences of wrongful dissociation?

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Multiple Choice

Which of the following describes the consequences of wrongful dissociation?

Wrongful dissociation ends the partner’s role in the partnership. The dissociated partner loses management authority and access to ongoing partnership operations, and the firm will typically wind up the partnership, often by buying out the dissociated partner’s interest. Crucially, the dissociated partner remains liable for obligations that the partnership incurred while they were a partner (before dissociation), to protect creditors and other partners. They do not, however, stay responsible for new obligations the partnership takes on after they leave, except under specific circumstances. This combination—termination of duties, possible buyout, and pre-dissociation liability—best fits the described consequences.

Wrongful dissociation ends the partner’s role in the partnership. The dissociated partner loses management authority and access to ongoing partnership operations, and the firm will typically wind up the partnership, often by buying out the dissociated partner’s interest. Crucially, the dissociated partner remains liable for obligations that the partnership incurred while they were a partner (before dissociation), to protect creditors and other partners. They do not, however, stay responsible for new obligations the partnership takes on after they leave, except under specific circumstances. This combination—termination of duties, possible buyout, and pre-dissociation liability—best fits the described consequences.

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