Under subsection (i), attorney's fees and other costs may be assessed against any party found to have acted arbitrarily, vexatiously, or not in good faith in connection with the valuation dispute, including the partnership's failure to tender payment of the estimated price or to make the required disclosures. This provision is based in part on RMBCA Section 13.31(b).

§1072.__Dissociated partner's power to bind and liability to

partnership

1.__Apparent authority of dissociated partner.__For 2 years after a partner dissociates without resulting in a dissolution and winding up of the partnership business, the partnership, including a surviving partnership under subchapter 9, is bound by an act of the dissociated partner that would have bound the partnership under section 1031 before dissociation only if at the time of entering into the transaction the other party:

A.__Reasonably believed that the dissociated partner was then a partner;

B.__Did not have notice of the partner's dissociation; and

C.__Is not deemed to have notice under section 1074, subsection 2.

2.__Liability for obligation after dissociation.__A dissociated partner is liable to the partnership for any damage caused to the partnership arising from an obligation incurred by the dissociated partner after dissociation for which the partnership is liable under subsection 1.

Comment

(This is Section 702 of the Uniform Partnership Act (1997).)

1. Section 702 deals with a dissociated partner's lingering apparent authority to bind the partnership in ordinary course partnership transactions and the partner's liability to the partnership for any loss caused thereby. It also applies to