Question 1

Ratification of a contract can take place by the principal knowingly taking a benefit under the contract.

Accepted Answer

A) True 
 B)False  True

Question 2

For a partnership to exist, something more than a single joint activity is required.

Accepted Answer

A) True 
 B)False  True

Question 3

A ________ process for sole proprietorships is used to control or restrict certain types of businesses, such as door-to-door sales, credit information services, moneylenders, hotels, and cabarets.

Accepted Answer

A)  licensing 
B)  business activity 
C)  liability 
D)  finance 
E)  risk management 
A)  licensing 
B)  business activity 
C)  liability 
D)  finance 
E)  risk management A

Question 4

An agency relationship can be created by

Accepted Answer

A)  actual authority. 
B)  estoppel. 
C)  ratification. 
D)  apparent authority. 
E)  all of the above. 
A)  actual authority. 
B)  estoppel. 
C)  ratification. 
D)  apparent authority. 
E)  all of the above.

Question 5

Discuss the extent of an agent's authority to bind a principal in dealings with a third party.

Accepted Answer

This question simply requires students t

Question 6

Which of the following statements is correct with respect to the Partnership Act?

Accepted Answer

A)  The Partnership Act always overrides any provisions contrary to it set out by the partners in the partnership agreement. 
B)  The Canadian Partnership Act is enacted by the federal government and creates a uniform and cohesive system of partnership law for all of Canada. 
C)  The Partnership Act states clearly that a partnership is only created by specific agreement between the partners to that effect. 
D)  The Partnership Act sets out provisions that will govern the relations between the partners unless those partners have agreed otherwise. 
E)  When in conflict, the terms of the federal Partnership Act override the provincial partnership acts. 
A)  The Partnership Act always overrides any provisions contrary to it set out by the partners in the partnership agreement. 
B)  The Canadian Partnership Act is enacted by the federal government and creates a uniform and cohesive system of partnership law for all of Canada. 
C)  The Partnership Act states clearly that a partnership is only created by specific agreement between the partners to that effect. 
D)  The Partnership Act sets out provisions that will govern the relations between the partners unless those partners have agreed otherwise. 
E)  When in conflict, the terms of the federal Partnership Act override the provincial partnership acts.

Question 7

Adams was approached by a Mr. McCarthy of XYZ Co., who requested that Adams pay $10,000 to extinguish a debt owed by the partnership of Adams and Jefferson. Adams denied the partnership and the liability. In asserting his claim, McCarthy cited the following facts, all of which he could prove. Which of these facts is the strongest evidence of the existence of a partnership?

Accepted Answer

A)  Adams and Jefferson co-owned property. 
B)  Adams and Jefferson shared the profits from a business. 
C)  Adams and Jefferson shared gross returns from a business. 
D)  Adams and Jefferson worked together for a non-profit charity. 
E)  Adams received a commission from Jefferson based on the sale price of the goods sold by Adams for Jefferson. 
A)  Adams and Jefferson co-owned property. 
B)  Adams and Jefferson shared the profits from a business. 
C)  Adams and Jefferson shared gross returns from a business. 
D)  Adams and Jefferson worked together for a non-profit charity. 
E)  Adams received a commission from Jefferson based on the sale price of the goods sold by Adams for Jefferson.

Question 8

Sam hires Joe to negotiate and sign a contract with Ken on Sam's behalf. Which of the following is true?

Accepted Answer

A)  If Joe acts outside his express authority and negotiates and signs the contract with Ken, Sam may not be a party to that contract. 
B)  If Joe acts outside his implied and express authority, Sam will owe him for his services. 
C)  If Joe acts within his apparent authority, but outside his express or implied authority, Sam will be bound by the contract, but may sue Joe for breach of his agency contract. 
D)  If Joe acts outside express, implied, and apparent authority, Sam is not bound by the contract, even if he ratifies the contract. 
E)  If Joe acts outside his express, implied, and apparent authority, he could be sued by Sam, but not by Ken, because he has no contractual relationship with Ken. 
A)  If Joe acts outside his express authority and negotiates and signs the contract with Ken, Sam may not be a party to that contract. 
B)  If Joe acts outside his implied and express authority, Sam will owe him for his services. 
C)  If Joe acts within his apparent authority, but outside his express or implied authority, Sam will be bound by the contract, but may sue Joe for breach of his agency contract. 
D)  If Joe acts outside express, implied, and apparent authority, Sam is not bound by the contract, even if he ratifies the contract. 
E)  If Joe acts outside his express, implied, and apparent authority, he could be sued by Sam, but not by Ken, because he has no contractual relationship with Ken.

Question 9

Which of the following is not acting as an agent in the eyes of the law?

Accepted Answer

A)  The cashier at London Drugs 
B)  An editor for the Gazette who writes some of the articles and proofreads the final draft of the paper 
C)  The paperboy who sells subscriptions for the Globe and Mail 
D)  A real estate salesman working for A.E. LePage 
E)  A computer programmer hired by a real estate agency to help computerize the office by buying appropriate software and hardware for the company and adapting the programs to fit the agency's needs 
A)  The cashier at London Drugs 
B)  An editor for the Gazette who writes some of the articles and proofreads the final draft of the paper 
C)  The paperboy who sells subscriptions for the Globe and Mail 
D)  A real estate salesman working for A.E. LePage 
E)  A computer programmer hired by a real estate agency to help computerize the office by buying appropriate software and hardware for the company and adapting the programs to fit the agency's needs

Question 10

Reese Publishing Inc. hosts a golf tournament. In attendance are Jennifer Reese, the owner, director, and manager of Reese Publishing Inc.; her husband, Aaryn, a professional race-car driver and voracious reader who reads everything Reese Publishing Inc. publishes; her sales force, Laura, Catherine, and Keighla (each of whom signed deals that day); and Gena, the office manager, who is responsible for all of the company's office supply purchases. Which of these people act as agents?

Accepted Answer

A)  Only Laura, Catherine, Keighla, and Gena 
B)  Only Laura, Catherine and Keighla 
C)  All of them except Aaryn 
D)  All of them 
E)  None of them 
A)  Only Laura, Catherine, Keighla, and Gena 
B)  Only Laura, Catherine and Keighla 
C)  All of them except Aaryn 
D)  All of them 
E)  None of them

Question 11

Which one of the following statements is correct with respect to the law of partnership?

Accepted Answer

A)  Every partner is responsible for every contract entered into by his partner. 
B)  Partners are only responsible for contracts entered into by their partnership if the third party knew that the person they were dealing with was a partner in the partnership. 
C)  Partners are responsible for any contracts entered into by their partners related to the partnership business. 
D)  A partner is responsible for contracts with third parties entered into by their partners only where it has been clearly stated by the partner to the third party that he is entering the contract on behalf of the partnership. 
E)  Partners cannot bind their partners in contract without specific written authority. 
A)  Every partner is responsible for every contract entered into by his partner. 
B)  Partners are only responsible for contracts entered into by their partnership if the third party knew that the person they were dealing with was a partner in the partnership. 
C)  Partners are responsible for any contracts entered into by their partners related to the partnership business. 
D)  A partner is responsible for contracts with third parties entered into by their partners only where it has been clearly stated by the partner to the third party that he is entering the contract on behalf of the partnership. 
E)  Partners cannot bind their partners in contract without specific written authority.

Question 12

The ratification of a contract by the principal must be done in writing.

Accepted Answer

A) True 
 B)False

Question 13

An agent with no express, implied, or apparent authority to do so identified himself as an agent for his principal, and on behalf of his principal bought a computer. The principal refused to ratify the contract. On these facts, which of the following is true?

Accepted Answer

A)  The principal would have to pay for the computer because the agent was an agent for that principal. 
B)  The agent could be sued by the seller of the computer for breach of his warranty of authority. 
C)  By exceeding his authority, the agent has become the buyer of the computer himself. 
D)  The seller of the computer could sue the agent for breach of contract for saying he was an agent. 
E)  The seller could sue the principal for breach of warranty of authority. 
A)  The principal would have to pay for the computer because the agent was an agent for that principal. 
B)  The agent could be sued by the seller of the computer for breach of his warranty of authority. 
C)  By exceeding his authority, the agent has become the buyer of the computer himself. 
D)  The seller of the computer could sue the agent for breach of contract for saying he was an agent. 
E)  The seller could sue the principal for breach of warranty of authority.

Question 14

Explain under what circumstances a principal who is not an employer will be held responsible for the wrongful acts of his agent.

Accepted Answer

The principal will b

Question 15

Which of the following is true with respect to the agency relationship?

Accepted Answer

A)  An agent acting gratuitously can never bind the principal. 
B)  An agent's apparent authority may be implied from the position that the agent holds in the employer's organization. 
C)  When a principal has specifically limited the authority of the agent, that agent can never bind the principal in a contract, even if the agent acts outside his authority. 
D)  An agent's authority is limited to whatever authority the principal specifically gives the agent. 
E)  Actual authority is the authority the principal has implied in conversations with a third party. 
A)  An agent acting gratuitously can never bind the principal. 
B)  An agent's apparent authority may be implied from the position that the agent holds in the employer's organization. 
C)  When a principal has specifically limited the authority of the agent, that agent can never bind the principal in a contract, even if the agent acts outside his authority. 
D)  An agent's authority is limited to whatever authority the principal specifically gives the agent. 
E)  Actual authority is the authority the principal has implied in conversations with a third party.

Question 16

The sole proprietor carries on business alone and cannot employ others in the process.

Accepted Answer

A) True 
 B)False

Question 17

Explain the limitations of the liability of partners for the acts of other partners.

Accepted Answer

Each partner has unlimited liability for

Question 18

Joe and Sam were in business school together. After they graduated, they decided to open an ice-cream store in a mall together. They had skipped the classes where they were taught about different methods and forms of carrying on business and so gave no thought as to how they would structure their relationship. Which of the following is true with respect to the legal positions of Joe and Sam?

Accepted Answer

A)  Sam and Joe are not in a partnership since they have not specifically agreed to be. 
B)  If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, he must share any profits he makes with Joe. 
C)  If Sam were to find a great deal on anchovy ice-cream and purchased 2000 litres of it, only Sam would be liable for the debt incurred as a result of the purchase. 
D)  If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, Joe would be liable for any losses he suffered along with Sam. 
E)  If a customer were injured because of poorly kept food and Sam did not have the assets to pay his half, Joe would only have to pay for his half of the damages suffered. 
A)  Sam and Joe are not in a partnership since they have not specifically agreed to be. 
B)  If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, he must share any profits he makes with Joe. 
C)  If Sam were to find a great deal on anchovy ice-cream and purchased 2000 litres of it, only Sam would be liable for the debt incurred as a result of the purchase. 
D)  If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, Joe would be liable for any losses he suffered along with Sam. 
E)  If a customer were injured because of poorly kept food and Sam did not have the assets to pay his half, Joe would only have to pay for his half of the damages suffered.

Question 19

"For a partnership to exist, the parties must have consented to its creation." Comment on the accuracy of that statement.

Accepted Answer

This statement is inaccurate.

Question 20

Explain how the principle of fiduciary duty works in a partnership relationship.

Accepted Answer

It is very important that students under

Ratification of a contract can take place by the principal knowingly taking a benefit under the contract.

For a partnership to exist, something more than a single joint activity is required.

A ________ process for sole proprietorships is used to control or restrict certain types of businesses, such as door-to-door sales, credit information services, moneylenders, hotels, and cabarets.

An agency relationship can be created by

Discuss the extent of an agent's authority to bind a principal in dealings with a third party.

Which of the following statements is correct with respect to the Partnership Act?

Sam hires Joe to negotiate and sign a contract with Ken on Sam's behalf. Which of the following is true?

Which of the following is not acting as an agent in the eyes of the law?

Which one of the following statements is correct with respect to the law of partnership?

The ratification of a contract by the principal must be done in writing.

An agent with no express, implied, or apparent authority to do so identified himself as an agent for his principal, and on behalf of his principal bought a computer. The principal refused to ratify the contract. On these facts, which of the following is true?

Explain under what circumstances a principal who is not an employer will be held responsible for the wrongful acts of his agent.

Which of the following is true with respect to the agency relationship?

The sole proprietor carries on business alone and cannot employ others in the process.

Explain the limitations of the liability of partners for the acts of other partners.

"For a partnership to exist, the parties must have consented to its creation." Comment on the accuracy of that statement.

Explain how the principle of fiduciary duty works in a partnership relationship.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

Exam 10: Agency and Partnership

Ratification of a contract can take place by the principal knowingly taking a benefit under the contract.

For a partnership to exist, something more than a single joint activity is required.

A ________ process for sole proprietorships is used to control or restrict certain types of businesses, such as door-to-door sales, credit information services, moneylenders, hotels, and cabarets.

An agency relationship can be created by

Discuss the extent of an agent's authority to bind a principal in dealings with a third party.

Which of the following statements is correct with respect to the Partnership Act?

Sam hires Joe to negotiate and sign a contract with Ken on Sam's behalf. Which of the following is true?

Which of the following is not acting as an agent in the eyes of the law?

Which one of the following statements is correct with respect to the law of partnership?

The ratification of a contract by the principal must be done in writing.

An agent with no express, implied, or apparent authority to do so identified himself as an agent for his principal, and on behalf of his principal bought a computer. The principal refused to ratify the contract. On these facts, which of the following is true?

Explain under what circumstances a principal who is not an employer will be held responsible for the wrongful acts of his agent.

Which of the following is true with respect to the agency relationship?

The sole proprietor carries on business alone and cannot employ others in the process.

Explain the limitations of the liability of partners for the acts of other partners.

"For a partnership to exist, the parties must have consented to its creation." Comment on the accuracy of that statement.

Explain how the principle of fiduciary duty works in a partnership relationship.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters