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Business Organizations Keyed to Macey
Gateway Potato Sales v. G.B. Investment Co.
Citation:822 P.2d 490 (1991)
Sunworth Corporation and G.B. Investment formed Sunworth Packing in November 1985 for the purpose of engaging in potato farming in Arizona. Robert C. Ellsworth, the president of Sunworth Corporation, called Robert Pribula, the owner of Gateway, located in Minnesota, to see if Gateway would supply Sunworth Packing with seed potatoes. Pribula decided to sell the seed potatoes to Sunworth Packing. While supplying the seed potatoes, Pribula believed that he was doing business with a general partnership. The sales documents used by the parties specified “Sunworth Packing Company” as the name of the partnership. All of Gateway’s dealings were with Ellsworth. Pribula neither contacted G.B. Investment prior to selling the seed potatoes to the limited partnership. G.B. Investment’s vice-president testified that G.B. Investment had exerted no control over the daily management and operation of the limited partnership, Sunworth Packing.
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