(1) An act of a person who immediately before a conversion or merger became effective was a partner in a converting or constituent partnership binds the converted or surviving organization after the conversion or merger becomes effective, if:(a) Before the conversion or merger became effective, the act would have bound the converting or constituent limited partnership under s. 620.8301. (b) At the time the third party enters into the transaction, the third party:1. Does not have notice of the conversion or merger.
2. Reasonably believes that the converted or surviving business is the converting or constituent partnership and that the person is a partner in the converting or constituent partnership.
(2) An act of a person that before a conversion or merger became effective was dissociated as a partner from a converting or constituent partnership binds the converted or surviving organization after the conversion or merger becomes effective, if:(a) Before the conversion or merger became effective, the act would have bound the converting or constituent partnership under s. 620.8301 if the person had been a partner. (b) At the time the third party enters into the transaction, fewer than 2 years have passed since the person dissociated as a partner, and the third party:1. Does not have notice of the dissociation.
2. Does not have notice of the conversion or merger.
3. Reasonably believes that the converted or surviving organization is the converting or constituent partnership and that the person is a partner in the converting or constituent partnership.
(3) If a person having knowledge of the conversion or merger causes a converted or surviving organization to incur an obligation under subsection (1) or subsection (2), the person is liable:(a) To the converted or surviving organization for any damage caused to the organization arising from the obligation.
(b) If another person is liable for the obligation, to that other person for any damage caused to that other person arising from the liability.
