Question 1

A partner's liability for the torts of her partners extends beyond those committed in the course of the business.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is correct with respect to the ratification of an agent's contracts?

Accepted Answer

A)  A principal can ratify a contract where the agent has gone beyond both his actual and apparent authority. 
B)  A principal can only ratify an agreement entered into by an agent if his name has not been used. 
C)  When a contract entered into by an agent is ratified by a principal, it commences at the time the principal ratifies the contract. 
D)  The agent can set a time limit within which the ratification must take place. 
E)  A contract can only be ratified if the principal was not able to enter into the contract himself at the time of ratification. 
A)  A principal can ratify a contract where the agent has gone beyond both his actual and apparent authority. 
B)  A principal can only ratify an agreement entered into by an agent if his name has not been used. 
C)  When a contract entered into by an agent is ratified by a principal, it commences at the time the principal ratifies the contract. 
D)  The agent can set a time limit within which the ratification must take place. 
E)  A contract can only be ratified if the principal was not able to enter into the contract himself at the time of ratification.

Question 3

Which one of the following is incorrect with respect to the rights of partners unless they have agreed otherwise?

Accepted Answer

A)  All profits are shared equally between the partners. 
B)  Reasonable expenses incurred by the partners in the course of business are reimbursed. 
C)  All partners have the right to share in management. 
D)  No major decision can be taken without unanimous agreement of all the partners. 
E)  Partners can sell their share of the partnership to another person without the agreement of the partners. 
A)  All profits are shared equally between the partners. 
B)  Reasonable expenses incurred by the partners in the course of business are reimbursed. 
C)  All partners have the right to share in management. 
D)  No major decision can be taken without unanimous agreement of all the partners. 
E)  Partners can sell their share of the partnership to another person without the agreement of the partners.

Question 4

Explain under what circumstances an agent can be liable for his conduct rather than the principal.

Accepted Answer

Agents are liable personally in agency l

Question 5

Explain how partnership can be brought to an end.

Accepted Answer

A partnership will end automatically wit

Question 6

Joe was a lawyer and agreed to pay Sam, a banker, 25% of any fees that he received as a result of mortgage referral business directed his way by Sam. Because of Joe's carelessness, one of the customers referred to him by Sam lost his property. The customer sued both Joe and Sam. Explain the likelihood of his success.

Accepted Answer

No partnership has been create

Question 7

Which of the following will establish the existence of a partnership?

Accepted Answer

A)  A debt is repaid by the creditor taking a share of the profits. 
B)  An employee receives a profit-sharing bonus. 
C)  The good-will portion of the sale of a business is repaid by a share of the profits. 
D)  The parties intend to share the expenses of the business. 
E)  The beneficiary of a deceased partner takes that partner's share of the income from the partnership. 
A)  A debt is repaid by the creditor taking a share of the profits. 
B)  An employee receives a profit-sharing bonus. 
C)  The good-will portion of the sale of a business is repaid by a share of the profits. 
D)  The parties intend to share the expenses of the business. 
E)  The beneficiary of a deceased partner takes that partner's share of the income from the partnership.

Question 8

Information that comes to the agent because of his position as agent must be passed on to the third party.

Accepted Answer

A) True 
 B)False

Question 9

The federal government owes a fiduciary duty to Indigenous peoples.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following statements is correct with respect to sole proprietorships?

Accepted Answer

A)  A sole proprietorship is a separate legal entity with one shareholder. 
B)  A sole proprietorship involves limited liability. 
C)  The sole proprietor is a society under the Societies Act. 
D)  A sole proprietorship involves unlimited liability for the proprietor. 
E)  The sole proprietor is restricted to service type businesses. 
A)  A sole proprietorship is a separate legal entity with one shareholder. 
B)  A sole proprietorship involves limited liability. 
C)  The sole proprietor is a society under the Societies Act. 
D)  A sole proprietorship involves unlimited liability for the proprietor. 
E)  The sole proprietor is restricted to service type businesses.

Question 11

Which of the following statements is correct with respect to unlimited liability?

Accepted Answer

A)  This means the partner can lose what he has invested but no more. 
B)  Only the partner's share of the partnership assets can be used to satisfy the debt incurred by another partner. 
C)  The partner cannot only lose what he has invested but can also be required to pay an additional amount equal to what he has invested. 
D)  Each partner can be held responsible for the debts of the partnership no matter how great they are. 
E)  If there are two partners, each partner can be held responsible for an amount equal to but no more than one half of the debts of the partnership. 
A)  This means the partner can lose what he has invested but no more. 
B)  Only the partner's share of the partnership assets can be used to satisfy the debt incurred by another partner. 
C)  The partner cannot only lose what he has invested but can also be required to pay an additional amount equal to what he has invested. 
D)  Each partner can be held responsible for the debts of the partnership no matter how great they are. 
E)  If there are two partners, each partner can be held responsible for an amount equal to but no more than one half of the debts of the partnership.

Question 12

Jones is a partner in a law firm in a small town and he is also doing legal work out of his home in the evening for himself. Which of the following statements is correct with respect to his responsibility for the money he earns?

Accepted Answer

A)  Jones has no responsibility; the money he makes by this extra work is his. 
B)  If Jones did not have the consent of his partners, Jones must pay over all the money he makes through his business at home to the partnership. 
C)  If Jones is a 1/3 partner in the law firm, he need only pay over 1/3 of what he makes. 
D)  Such conduct will automatically dissolve the partnership, but he can keep what he has made. 
E)  Jones has a duty to tell the other partners, but the money is his and he can keep up the extra work regardless of the other partners' consent. 
A)  Jones has no responsibility; the money he makes by this extra work is his. 
B)  If Jones did not have the consent of his partners, Jones must pay over all the money he makes through his business at home to the partnership. 
C)  If Jones is a 1/3 partner in the law firm, he need only pay over 1/3 of what he makes. 
D)  Such conduct will automatically dissolve the partnership, but he can keep what he has made. 
E)  Jones has a duty to tell the other partners, but the money is his and he can keep up the extra work regardless of the other partners' consent.

Question 13

The Partnership Act allows partners to change their liabilities and obligations to third parties.

Accepted Answer

A) True 
 B)False

Question 14

Norma and Janet decided to form a partnership for selling gourmet picnic baskets. To raise sufficient capital, they convinced their mothers to invest $5000 each as limited partners. Norma's mother was an experienced restaurateur and watched the business with great interest. On several occasions, she advised them on the business and contacted old business associates to buy surplus stock. She even filled in taking orders in the office when needed. A customer who was made ill by contaminated food from a tin can supplied in one basket sued. What would be the liability, if any, of the mothers?

Accepted Answer

A)  Janet's mother would be liable for $10,000, twice the amount invested, because she failed to take part in the management of the business. 
B)  A limited partner has her liability limited to the amount of her initial investment; therefore, neither mother has any further liability. 
C)  Both mothers would have unlimited liability because they contributed money but not services as required. 
D)  Norma's mother would have unlimited liability because she took part in the management of the business and therefore became a general partner. 
E)  Because one mother lost her limited liability status, they both do. 
A)  Janet's mother would be liable for $10,000, twice the amount invested, because she failed to take part in the management of the business. 
B)  A limited partner has her liability limited to the amount of her initial investment; therefore, neither mother has any further liability. 
C)  Both mothers would have unlimited liability because they contributed money but not services as required. 
D)  Norma's mother would have unlimited liability because she took part in the management of the business and therefore became a general partner. 
E)  Because one mother lost her limited liability status, they both do.

Question 15

In which one of the following situations will a court find that a partnership exists?

Accepted Answer

A)  Joe and Mary promote several dances at school and split the profits. 
B)  Joe and Mary, while in college, purchase a house and share the profits from the rent after deducting expenses. 
C)  Joe, a partner in a law firm, dies and Joe's widow takes over Joe's share of the profits. 
D)  Joe is a partner in a shoe store and sells his share of the business to Harry without the consent of his partner. 
E)  Joe sells his business to Harry for $10,000 for the assets and a further $20,000 for good will, the good will portion to be paid at a rate of 20% of the profits from the business until paid. 
A)  Joe and Mary promote several dances at school and split the profits. 
B)  Joe and Mary, while in college, purchase a house and share the profits from the rent after deducting expenses. 
C)  Joe, a partner in a law firm, dies and Joe's widow takes over Joe's share of the profits. 
D)  Joe is a partner in a shoe store and sells his share of the business to Harry without the consent of his partner. 
E)  Joe sells his business to Harry for $10,000 for the assets and a further $20,000 for good will, the good will portion to be paid at a rate of 20% of the profits from the business until paid.

Question 16

Discuss how a partnership arrangement may be brought to an end and the effect of dissolution.

Accepted Answer

Students should note that a partnership

Question 17

Which of the following is correct with respect to sole proprietorships?

Accepted Answer

A)  The sole proprietorship is a separate legal entity. 
B)  The sole proprietor has unlimited liability. 
C)  The sole proprietor has limited liability. 
D)  Sole proprietorship exists where two or more people carry on business together with a view towards profits. 
E)  A sole proprietorship must be incorporated. 
A)  The sole proprietorship is a separate legal entity. 
B)  The sole proprietor has unlimited liability. 
C)  The sole proprietor has limited liability. 
D)  Sole proprietorship exists where two or more people carry on business together with a view towards profits. 
E)  A sole proprietorship must be incorporated.

Question 18

"An agent is free to withhold information from the principal as long as it doesn't hurt the principal." Discuss the accuracy of this statement.

Accepted Answer

Any information that comes to an agent i

Question 19

The federal government does not owe a fiduciary duty to Indigenous peoples.

Accepted Answer

A) True 
 B)False

Question 20

To what does the term "estoppel" refer?

Accepted Answer

To an equitable remedy that st

A partner's liability for the torts of her partners extends beyond those committed in the course of the business.

Which of the following is correct with respect to the ratification of an agent's contracts?

Which one of the following is incorrect with respect to the rights of partners unless they have agreed otherwise?

Explain under what circumstances an agent can be liable for his conduct rather than the principal.

Explain how partnership can be brought to an end.

Which of the following will establish the existence of a partnership?

Information that comes to the agent because of his position as agent must be passed on to the third party.

The federal government owes a fiduciary duty to Indigenous peoples.

Which one of the following statements is correct with respect to sole proprietorships?

Which of the following statements is correct with respect to unlimited liability?

Jones is a partner in a law firm in a small town and he is also doing legal work out of his home in the evening for himself. Which of the following statements is correct with respect to his responsibility for the money he earns?

The Partnership Act allows partners to change their liabilities and obligations to third parties.

In which one of the following situations will a court find that a partnership exists?

Discuss how a partnership arrangement may be brought to an end and the effect of dissolution.

Which of the following is correct with respect to sole proprietorships?

"An agent is free to withhold information from the principal as long as it doesn't hurt the principal." Discuss the accuracy of this statement.

The federal government does not owe a fiduciary duty to Indigenous peoples.

To what does the term "estoppel" refer?

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

A partner's liability for the torts of her partners extends beyond those committed in the course of the business.

Which of the following is correct with respect to the ratification of an agent's contracts?

Which one of the following is incorrect with respect to the rights of partners unless they have agreed otherwise?

Explain under what circumstances an agent can be liable for his conduct rather than the principal.

Explain how partnership can be brought to an end.

Which of the following will establish the existence of a partnership?

Information that comes to the agent because of his position as agent must be passed on to the third party.

The federal government owes a fiduciary duty to Indigenous peoples.

Which one of the following statements is correct with respect to sole proprietorships?

Which of the following statements is correct with respect to unlimited liability?

Jones is a partner in a law firm in a small town and he is also doing legal work out of his home in the evening for himself. Which of the following statements is correct with respect to his responsibility for the money he earns?

The Partnership Act allows partners to change their liabilities and obligations to third parties.

In which one of the following situations will a court find that a partnership exists?

Discuss how a partnership arrangement may be brought to an end and the effect of dissolution.

Which of the following is correct with respect to sole proprietorships?

"An agent is free to withhold information from the principal as long as it doesn't hurt the principal." Discuss the accuracy of this statement.

The federal government does not owe a fiduciary duty to Indigenous peoples.

To what does the term "estoppel" refer?

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