Business Media, a partnership, publishes periodicals, including Cycle Review . DangerZoners, also a partnership, publishes Extreme Sports . Business Media and DangerZoners agree to pool their resources in a one-time deal to print and market a book, Future Runs . In contracting with Geo Cache, Inc., for supplies to print the book, Business Media commits fraud. In contracting with Host Articles Agency for materials to use in Extreme Sports , DangerZoners commits fraud. Geo Cache and Host Articles file suits against Business Media and DangerZoners. What type of business organization has Business Media and DangerZoners formed? To whom, if anyone, is Business Media liable? To whom, if anyone, is DangerZoners liable?

Business Media and DangerZoners formed a joint venture. Business Media is liable to Geo Cache, but not to Host Articles. DangerZoners is liable to Geo Cache and Host Articles.
A joint venture is an association of two or more business entities that combine their efforts or property for a single transaction or a series of related transactions or projects. This is what Business Media and DangerZoners did: they combined efforts to undertake a single project, the publishing of the book Future Runs .
Each joint venturer is liable to a third party for the actions of the other members of the joint venture in pursuit of the enterprise's common goal. Each member is not liable to a third party for the actions of other members pursuing their own separate interests. In this question, Business Media and DangerZoners are each liable for Business Media's fraud to Geo Cache, because it was committed in pursuit of their common enterprise. Only DangerZoners is liable for DangerZoners's fraud to Host Articles, however, because the fraud was committed in pursuit of DangerZoners's interest only.