Vermont § 3228 - Liability of purported partner

§ 3228. Liability of purported partner

• (a) If a person, by words or conduct, purports to be a partner, or consents to being represented
  by another as a partner, in a partnership or with one or more persons not partners,
  the purported partner is liable to a person to whom the representation is made, if
  that person, relying on the representation, enters into a transaction with the actual
  or purported partnership. If the representation, either by the purported partner or
  by a person with the purported partner’s consent, is made in a public manner, the
  purported partner is liable to a person who relies upon the purported partnership
  even if the purported partner is not aware of being held out as a partner to the claimant.
  If partnership liability results, the purported partner is liable with respect to
  that liability as if the purported partner were a partner. If no partnership liability
  results, the purported partner is liable with respect to that liability jointly and
  severally with any other person consenting to the representation. (b) If a person is thus represented to be a partner in an existing partnership, or with
  one or more persons not partners, the purported partner is an agent of persons consenting
  to the representation to bind them to the same extent and in the same manner as if
  the purported partner were a partner, with respect to persons who enter into transactions
  in reliance upon the representation. If all of the partners of the existing partnership
  consent to the representation, a partnership act or obligation results. If fewer than
  all of the partners of the existing partnership consent to the representation, the
  person acting and the partners consenting to the representation are jointly and severally
  liable. (c) A person is not liable as a partner merely because the person is named by another
  in a statement of partnership authority. (d) A person does not continue to be liable as a partner merely because of a failure to
  file a statement of dissociation or to amend a statement of partnership authority
  to indicate the partner’s dissociation from the partnership. (e) Except as otherwise provided in subsections (a) and (b) of this section, persons who
  are not partners as to each other are not liable as partners to other persons. (Added 1997, No. 149 (Adj. Sess.), § 1, eff. Jan. 1, 1999.)