Question 1

When an agent has been dealing with a third party for an undisclosed principal and there is a default, what rights are available to the third party?

Accepted Answer

The third party can

Question 2

Explain what must be done to create a limited partnership.

Accepted Answer

Limited partners invest in the partnersh

Question 3

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

Accepted Answer

A)  The sole proprietor has limited liability. 
B)  The sole proprietor need not adhere to any licensing and government regulations. 
C)  The sole proprietor must consult with the other owners before making any major decisions regarding the business. 
D)  The sole proprietor has the same extent of liability as a shareholder. 
E)  The sole proprietor is responsible for the torts committed by an employee that take place during the course of business. 
A)  The sole proprietor has limited liability. 
B)  The sole proprietor need not adhere to any licensing and government regulations. 
C)  The sole proprietor must consult with the other owners before making any major decisions regarding the business. 
D)  The sole proprietor has the same extent of liability as a shareholder. 
E)  The sole proprietor is responsible for the torts committed by an employee that take place during the course of business.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Identify the true statement concerning the law of principal and agent.

Accepted Answer

A)  Agency is only created by way of a contract. 
B)  The principal and his agent owe each other the same duties. 
C)  An agent who puts himself in a position where his interests conflict with those of his principal is in breach of his duties even though no actual harm comes to his principal. 
D)  An agent with no express authority can never bind his principal into a contract with a third party. 
E)  An agent can never be liable to the third party himself while the principal will bear no such liability. 
A)  Agency is only created by way of a contract. 
B)  The principal and his agent owe each other the same duties. 
C)  An agent who puts himself in a position where his interests conflict with those of his principal is in breach of his duties even though no actual harm comes to his principal. 
D)  An agent with no express authority can never bind his principal into a contract with a third party. 
E)  An agent can never be liable to the third party himself while the principal will bear no such liability.

Question 6

A partnership is primarily a contractual relationship and can be created verbally or implied from conduct.

Accepted Answer

A) True 
 B)False

Question 7

If a third party relies on the principal's representation that the agent has the authority to act, which of the following is true?

Accepted Answer

A)  The principal can claim the agent had no authority. 
B)  The agent is solely liable for the conduct if it results in injury to the third party. 
C)  The principal can claim estoppel. 
D)  The principal cannot claim the agent had no authority. 
E)  The agent can sue the principal for breach of contract. 
A)  The principal can claim the agent had no authority. 
B)  The agent is solely liable for the conduct if it results in injury to the third party. 
C)  The principal can claim estoppel. 
D)  The principal cannot claim the agent had no authority. 
E)  The agent can sue the principal for breach of contract.

Question 8

Max has been sued for $20,000 as a partner with Jim Nogoode. Which of the following is False with regard to determining whether or not a person is a partner?

Accepted Answer

A)  The legal relationship of partnership requires that two or more persons carry on business in common with a view to profit. 
B)  Co-ownership of a property does not in itself raise a presumption of partnership. 
C)  Sharing gross revenues of a business does not in itself raise a presumption of partnership. 
D)  If no profit was made in the business, Max would not be a partner. 
E)  Sharing of profits is evidence of the existence of a partnership. 
A)  The legal relationship of partnership requires that two or more persons carry on business in common with a view to profit. 
B)  Co-ownership of a property does not in itself raise a presumption of partnership. 
C)  Sharing gross revenues of a business does not in itself raise a presumption of partnership. 
D)  If no profit was made in the business, Max would not be a partner. 
E)  Sharing of profits is evidence of the existence of a partnership.

Question 9

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 10

Limited liability can be the most significant disadvantage of the sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

A salesman in a men's clothing store has heard rumours that the store is going out of business. The boss is out of the store when a customer who has heard the same thing comes in and offers to purchase the entire stock, the display cases, and the fixtures. The salesman accepts on behalf of the employer. Discuss the legal position of the parties.

Accepted Answer

Unless the boss has given specific autho

Question 13

As a general rule, sole proprietors are subject to fewer government regulations than partnerships.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Which of the following is an example of just being an agent as opposed to an employee?

Accepted Answer

A)  Joe worked in the mailroom of Smith Textiles, sorting mail. 
B)  Joe worked as a mechanic for Smith Used Cars Ltd. 
C)  Joe worked as a janitor for Smith Textiles. 
D)  Joe worked as the purchasing agent for Smith Textiles Ltd. 
E)  Joe worked as a delivery driver for Smith Textiles Ltd. 
A)  Joe worked in the mailroom of Smith Textiles, sorting mail. 
B)  Joe worked as a mechanic for Smith Used Cars Ltd. 
C)  Joe worked as a janitor for Smith Textiles. 
D)  Joe worked as the purchasing agent for Smith Textiles Ltd. 
E)  Joe worked as a delivery driver for Smith Textiles Ltd.

Question 16

Discuss the problem of liability with respect to partnership and how this difficulty can be overcome if partnership is chosen as the method of carrying on business.

Accepted Answer

Partners have unlimited liability for th

Question 17

Explain what is meant by an agent's fiduciary duty. Give three examples of how that fiduciary duty can be breached.

Accepted Answer

Some examples from the text include: mus

Question 18

Joe R. notified his partners in writing that he would be retiring from the business partnership at the end of 2015. It was acknowledged and agreed upon and, at year end, the remaining partners paid him for his interest in the partnership. In February of 2016, one of the remaining partners misapplied some trust funds that a long-time client had placed in the care of the partnership for the purchase of a hotel. The partnership was sued, but the assets of the partnership were not sufficient to satisfy the judgment. The successful plaintiff went against the personal assets of the partners, including those of Joe R. What is the likely outcome?

Accepted Answer

A)  Joe R. is not liable because he had retired from the partnership at year end and had properly notified his partners. 
B)  Joe R. is not liable because he had had nothing whatsoever to do with the misapplication of the trust money. 
C)  Joe R. is liable if he failed to give proper notice to outsiders, namely, the long-time client whose funds were misapplied. 
D)  Joe R. is only liable for his share of the losses even if the other partners don't have the assets to pay. 
E)  Joe R. is not liable since he was not a partner when the misapplication happened. 
A)  Joe R. is not liable because he had retired from the partnership at year end and had properly notified his partners. 
B)  Joe R. is not liable because he had had nothing whatsoever to do with the misapplication of the trust money. 
C)  Joe R. is liable if he failed to give proper notice to outsiders, namely, the long-time client whose funds were misapplied. 
D)  Joe R. is only liable for his share of the losses even if the other partners don't have the assets to pay. 
E)  Joe R. is not liable since he was not a partner when the misapplication happened.

Question 19

Any restrictions in the employment contract between principal and agent on an agent's authority will be binding on a third party.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the principle of ratification. In your discussion, look at any injustice caused by its operation and limitations on its availability.

Accepted Answer

Ratification of a contract takes place w

When an agent has been dealing with a third party for an undisclosed principal and there is a default, what rights are available to the third party?

Explain what must be done to create a limited partnership.

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

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

Identify the true statement concerning the law of principal and agent.

A partnership is primarily a contractual relationship and can be created verbally or implied from conduct.

If a third party relies on the principal's representation that the agent has the authority to act, which of the following is true?

Max has been sued for $20,000 as a partner with Jim Nogoode. Which of the following is False with regard to determining whether or not a person is a partner?

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

Limited liability can be the most significant disadvantage of the sole proprietorship.

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

As a general rule, sole proprietors are subject to fewer government regulations than partnerships.

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

Which of the following is an example of just being an agent as opposed to an employee?

Discuss the problem of liability with respect to partnership and how this difficulty can be overcome if partnership is chosen as the method of carrying on business.

Explain what is meant by an agent's fiduciary duty. Give three examples of how that fiduciary duty can be breached.

Any restrictions in the employment contract between principal and agent on an agent's authority will be binding on a third party.

Discuss the principle of ratification. In your discussion, look at any injustice caused by its operation and limitations on its availability.

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

When an agent has been dealing with a third party for an undisclosed principal and there is a default, what rights are available to the third party?

Explain what must be done to create a limited partnership.

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

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

Identify the true statement concerning the law of principal and agent.

A partnership is primarily a contractual relationship and can be created verbally or implied from conduct.

If a third party relies on the principal's representation that the agent has the authority to act, which of the following is true?

Max has been sued for $20,000 as a partner with Jim Nogoode. Which of the following is False with regard to determining whether or not a person is a partner?

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

Limited liability can be the most significant disadvantage of the sole proprietorship.

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

As a general rule, sole proprietors are subject to fewer government regulations than partnerships.

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

Which of the following is an example of just being an agent as opposed to an employee?

Discuss the problem of liability with respect to partnership and how this difficulty can be overcome if partnership is chosen as the method of carrying on business.

Explain what is meant by an agent's fiduciary duty. Give three examples of how that fiduciary duty can be breached.

Any restrictions in the employment contract between principal and agent on an agent's authority will be binding on a third party.

Discuss the principle of ratification. In your discussion, look at any injustice caused by its operation and limitations on its availability.

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