Question 1

It is only where a principal consciously ratifies that a contract can be effectively ratified.

Accepted Answer

A) True 
 B)False

Question 2

A principal whose identity is concealed from the third parties with whom the agent is dealing is known as ________.

Accepted Answer

an undiscl

Question 3

Which of the following is true with regard to partnership?

Accepted Answer

A)  No partnership can be formed unless the parties intended to create a partnership. 
B)  Sharing gross receipts is sufficient evidence of the existence of a partnership. 
C)  The terms of the Partnership Act will be implied in a partnership agreement that includes provisions on the same point. 
D)  A general partner is not an agent of the firm and the other partners. 
E)  A limited partnership is an arrangement in which a partner may limit liability to his capital contribution. 
A)  No partnership can be formed unless the parties intended to create a partnership. 
B)  Sharing gross receipts is sufficient evidence of the existence of a partnership. 
C)  The terms of the Partnership Act will be implied in a partnership agreement that includes provisions on the same point. 
D)  A general partner is not an agent of the firm and the other partners. 
E)  A limited partnership is an arrangement in which a partner may limit liability to his capital contribution.

Question 4

Discuss the concept of vicarious liability as it relates to employment and agency law.

Accepted Answer

Vicarious liability is where one person

Question 5

Which of the following statements best describes a partnership?

Accepted Answer

A)  Partnership involves two or more persons carrying on business with a view towards profits. 
B)  Partnerships involve limited liability. 
C)  Partnerships are created when two or more persons specifically agree to be in partnership. 
D)  Partnerships are only created when they have been properly registered with the government. 
E)  Partnerships are like any other form of contract; they can only be created when there is consensus between the parties in the form of offer and acceptance to that effect. 
A)  Partnership involves two or more persons carrying on business with a view towards profits. 
B)  Partnerships involve limited liability. 
C)  Partnerships are created when two or more persons specifically agree to be in partnership. 
D)  Partnerships are only created when they have been properly registered with the government. 
E)  Partnerships are like any other form of contract; they can only be created when there is consensus between the parties in the form of offer and acceptance to that effect.

Question 6

A partnership cannot employ employees but must carry on its business through the partners.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  A partner is responsible for all torts committed by their partners. 
B)  A partner is only responsible for those torts committed by the partner that are committed during the course of the business. 
C)  Even where the tort is committed outside the scope of the partnership business, the partners will be liable for a tort committed by their partner. 
D)  If a partner commits a tort in his own personal capacity outside of the scope of the partnership business, the victim has no recourse against any of the partnership assets. 
E)  Where a person is injured by the careless action of an employee of a partnership in the course of his employment, that injured person has recourse against the assets of the partnership, but if those assets are not enough, he cannot go against the personal assets of the partners themselves. 
A)  A partner is responsible for all torts committed by their partners. 
B)  A partner is only responsible for those torts committed by the partner that are committed during the course of the business. 
C)  Even where the tort is committed outside the scope of the partnership business, the partners will be liable for a tort committed by their partner. 
D)  If a partner commits a tort in his own personal capacity outside of the scope of the partnership business, the victim has no recourse against any of the partnership assets. 
E)  Where a person is injured by the careless action of an employee of a partnership in the course of his employment, that injured person has recourse against the assets of the partnership, but if those assets are not enough, he cannot go against the personal assets of the partners themselves.

Question 8

The Partnership Act provides that if the partners do not agree otherwise, certain terms of a partnership agreement will be implied. Which of the following is not such an implied term?

Accepted Answer

A)  Each partner shall be responsible for the losses of the firm only to the limit of that partner's initial cash contribution. 
B)  Every partner may take part in the management of the partnership business. 
C)  No partner is entitled to a wage for acting in the partnership business. 
D)  No person may be introduced as a new partner without the consent of all of the existing partners. 
E)  The partners will share the profits equally. 
A)  Each partner shall be responsible for the losses of the firm only to the limit of that partner's initial cash contribution. 
B)  Every partner may take part in the management of the partnership business. 
C)  No partner is entitled to a wage for acting in the partnership business. 
D)  No person may be introduced as a new partner without the consent of all of the existing partners. 
E)  The partners will share the profits equally.

Question 9

An agent contracted with a third party on behalf of a principal, but went beyond both his actual and apparent authority. The third party was never paid. Which of the following indicates the legal position of the third party?

Accepted Answer

A)  He can successfully sue the principal because the principal is always liable for the actions of his agent. 
B)  He can successfully sue the agent for breach of warranty of authority if the principal fails to ratify the contract. 
C)  Since the agent had no authority, the third party has no remedy against anyone. 
D)  The third party can ratify the deal and force the principal to go through with it. 
E)  He can sue the agent for the tort of nuisance. 
A)  He can successfully sue the principal because the principal is always liable for the actions of his agent. 
B)  He can successfully sue the agent for breach of warranty of authority if the principal fails to ratify the contract. 
C)  Since the agent had no authority, the third party has no remedy against anyone. 
D)  The third party can ratify the deal and force the principal to go through with it. 
E)  He can sue the agent for the tort of nuisance.

Question 10

Joe entered into partnership with two others in the establishment of a real estate sales agency. The other two, Sam and Harry, had considerable experience in the real estate business but no money. Joe, on the other hand, had his own home and several significant assets, and although he didn't have any experience in real estate, his monetary contribution made him an equal partner with Sam and Harry. Unfortunately, Harry misused some trust funds that had come into his care as a result of business by investing it in his son's business rather than in an interest-bearing account. The son's business went sour and the money was lost. The client sued Harry, Sam, and Joe. Explain the legal position of Joe here.

Accepted Answer

Because Joe is a partner with the other

Question 11

Joe sold Harry his barber shop for $100,000. He was paid $20,000 in cash, the other $80,000 to be paid by Harry giving Joe 20% of the profits of the business until the amount was paid off. Unfortunately, a customer, Sam, was injured by Harry, who managed to cut off Sam's right ear while giving him a shave. Sam sued both Harry and Joe. Explain his likelihood of success.

Accepted Answer

There is no partnership here between Joe

Question 12

If a person wants to invest in a partnership but avoid the obligations associated with partnership, what can she do?

Accepted Answer

She can invest as a limited partner. To

Question 13

Dennis, Sam, George, and Ray were partners in an accounting business, and Ray decided he wanted to retire. He sold his share of the partnership to Leonardo, but Leonardo is not a partner unless the other partners approve the change.

Accepted Answer

A) True 
 B)False

Question 14

What option does a principal have if the agent has acted beyond both actual and apparent authority, but the principal wants to proceed with the agreement?

Accepted Answer

The princi

Question 15

"Partners in a limited liability partnership (LLP) are not liable for the liability of the partnership." Discuss the accuracy of this statement.

Accepted Answer

This statement is not accurate. Professi

Question 16

Because of an alarming drop in the earnings of Microminds Ltd., Roger, the principal contract negotiator and president of the software development company, called a meeting to discuss productivity and customer satisfaction. At the meeting were Michael, a troubleshooter who helped customers over the phone who needed guidance in using the company's software; Ralph, the receptionist and purchaser of the office supplies for the company; Keith and Jason, salesmen hired on a commission basis (i.e., not as employees but as independent contractors); Mr. Toman, purchasing agent for the Vancouver School Board, an important customer; and Mr. Rice, purchasing agent for Matol Toys Ltd., also a customer. Which of these is acting as an agent?

Accepted Answer

A)  All of them 
B)  All of them except Keith and Jason 
C)  All of them except Michael 
D)  Roger, Toman, and Rice only 
E)  Only Roger 
A)  All of them 
B)  All of them except Keith and Jason 
C)  All of them except Michael 
D)  Roger, Toman, and Rice only 
E)  Only Roger

Question 17

It is possible through a partnership agreement to create different classes of partners.

Accepted Answer

A) True 
 B)False

Question 18

Where an agent has been guilty of fraudulent misrepresentation, the agent must sue the principal.

Accepted Answer

A) True 
 B)False

Question 19

When an agent's authority is terminated by mutual agreement, what is the impact on the agent's actual and apparent authority?

Accepted Answer

A)  The actual authority continues until the third party is notified of termination, but the apparent authority ceases. 
B)  Both the actual authority and the apparent authority continue until the third party is notified of termination. 
C)  Both the actual authority and the apparent authority immediately cease. 
D)  The actual authority ceases, but the apparent authority continues until the third party is notified of termination. 
E)  Both the actual authority and the apparent authority continue, because an agent's authority cannot be terminated by mutual agreement. 
A)  The actual authority continues until the third party is notified of termination, but the apparent authority ceases. 
B)  Both the actual authority and the apparent authority continue until the third party is notified of termination. 
C)  Both the actual authority and the apparent authority immediately cease. 
D)  The actual authority ceases, but the apparent authority continues until the third party is notified of termination. 
E)  Both the actual authority and the apparent authority continue, because an agent's authority cannot be terminated by mutual agreement.

Question 20

Although the sole proprietor's entire personal fortune is at risk, insurance may offset that risk.

Accepted Answer

A) True 
 B)False

It is only where a principal consciously ratifies that a contract can be effectively ratified.

A principal whose identity is concealed from the third parties with whom the agent is dealing is known as ________.

Which of the following is true with regard to partnership?

Discuss the concept of vicarious liability as it relates to employment and agency law.

Which of the following statements best describes a partnership?

A partnership cannot employ employees but must carry on its business through the partners.

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

The Partnership Act provides that if the partners do not agree otherwise, certain terms of a partnership agreement will be implied. Which of the following is not such an implied term?

An agent contracted with a third party on behalf of a principal, but went beyond both his actual and apparent authority. The third party was never paid. Which of the following indicates the legal position of the third party?

If a person wants to invest in a partnership but avoid the obligations associated with partnership, what can she do?

Dennis, Sam, George, and Ray were partners in an accounting business, and Ray decided he wanted to retire. He sold his share of the partnership to Leonardo, but Leonardo is not a partner unless the other partners approve the change.

What option does a principal have if the agent has acted beyond both actual and apparent authority, but the principal wants to proceed with the agreement?

"Partners in a limited liability partnership (LLP) are not liable for the liability of the partnership." Discuss the accuracy of this statement.

It is possible through a partnership agreement to create different classes of partners.

Where an agent has been guilty of fraudulent misrepresentation, the agent must sue the principal.

When an agent's authority is terminated by mutual agreement, what is the impact on the agent's actual and apparent authority?

Although the sole proprietor's entire personal fortune is at risk, insurance may offset that risk.

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

It is only where a principal consciously ratifies that a contract can be effectively ratified.

A principal whose identity is concealed from the third parties with whom the agent is dealing is known as ________.

Which of the following is true with regard to partnership?

Discuss the concept of vicarious liability as it relates to employment and agency law.

Which of the following statements best describes a partnership?

A partnership cannot employ employees but must carry on its business through the partners.

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

The Partnership Act provides that if the partners do not agree otherwise, certain terms of a partnership agreement will be implied. Which of the following is not such an implied term?

An agent contracted with a third party on behalf of a principal, but went beyond both his actual and apparent authority. The third party was never paid. Which of the following indicates the legal position of the third party?

If a person wants to invest in a partnership but avoid the obligations associated with partnership, what can she do?

Dennis, Sam, George, and Ray were partners in an accounting business, and Ray decided he wanted to retire. He sold his share of the partnership to Leonardo, but Leonardo is not a partner unless the other partners approve the change.

What option does a principal have if the agent has acted beyond both actual and apparent authority, but the principal wants to proceed with the agreement?

"Partners in a limited liability partnership (LLP) are not liable for the liability of the partnership." Discuss the accuracy of this statement.

It is possible through a partnership agreement to create different classes of partners.

Where an agent has been guilty of fraudulent misrepresentation, the agent must sue the principal.

When an agent's authority is terminated by mutual agreement, what is the impact on the agent's actual and apparent authority?

Although the sole proprietor's entire personal fortune is at risk, insurance may offset that risk.

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