Abstract
South American Imports, Inc. was originally organized as a sole proprietorship by Mr. John Carter in April, 1972, and was located in the central part of a large midwestern city. In August, 1972, Mr. Joseph Morgan joined the company as a partner. Although he possessed no prior business experience, Morgan had a strong interest in Spanish and Mediterranean art objects since his high school days and was eager to become involved in this type of business. | In September, 1972, the two partners felt it was necessary to relocate to a suburban area. They selected as their new home, a small shopping center which had recently been constructed A sales representative for the developer had shown the partners plans for the entire complex. These plans included a branch of a large well-known local department store on the east end of the complex and a large well-known supermarket on the west end. The area between these two stores was to have provided space for sixty-four retail outlets. Visualizing this would place their own business in an ideal location with a steady flow of walk- by traffic, together with ample off-street parking, Carter and Morgan decided to relocate to Futurity Plaza and subsequently signed a three-year lease. | In December, a tragic plane crash took the life of John Carter. In accord with the partnership buy-sell agreement, Morgan purchased his partner's share of the business from Mrs. Carter. Morgan operated the business as a sole proprietorship until he incorporated in June, 1973.