Question

Under the RUPA, a partner’s duty not to compete terminates upon dissociation, and the dissociated partner may immediately engage in a competitive business without further consent.

True

False

Answer 1

Answer:- True.

Section 404(b)(3) under General Standard of Partners Conduct states ,under the Duty of Loyalty, that a partner shall refrain from competing with the partnership in the conduct of the partnership business before the dissolution of the partnership.The RUPA introduced dissociation and  whereby a partner can be dissociated itself from a partnership without dissloving the partnership. And consequent to introduction of RUPA, a partner's duty not to compete terminates upon dissociation, and the dissociated partner is free immediately to engage in a competitive business, without any further consent.