Question 1

A person owing a fiduciary duty must submerge personal interests in favour of the interests of the principal he or she represents.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

Each partner has unlimited liability for

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is incorrect with respect to the law of partnership?

Accepted Answer

A)  The admission of a new partner requires the consent of all the partners. 
B)  All partners have the right to inspect all partnership records. 
C)  The death or insanity of one of the partners will dissolve the partnership. 
D)  A partnership can always be brought to an end by court order, no matter what the partnership agreement says. 
E)  Limited partners are limited in the sense that they cannot take part in the management of the partnership, but otherwise they are like any other partners. 
A)  The admission of a new partner requires the consent of all the partners. 
B)  All partners have the right to inspect all partnership records. 
C)  The death or insanity of one of the partners will dissolve the partnership. 
D)  A partnership can always be brought to an end by court order, no matter what the partnership agreement says. 
E)  Limited partners are limited in the sense that they cannot take part in the management of the partnership, but otherwise they are like any other partners.

Question 6

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 7

Joe, Sam, and Harry set up an accounting partnership in a small town. Harry, to earn money on the side, did some accounting for friends at night, for which he received a fee. When Joe and Sam found out about this, they demanded that the fees received be paid into the partnership business. Explain the legal position of Harry.

Accepted Answer

Harry owes a fiduciary duty to the other

Question 8

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 9

The fiduciary duty of an agent refers to his obligations to act within the limits of his actual or apparent authority.

Accepted Answer

A) True 
 B)False

Question 10

Describe what is meant by an agent's apparent authority.

Accepted Answer

When a principal has led someone to beli

Question 11

An agent owes a fiduciary duty to the third party to act in that third party's best interest.

Accepted Answer

A) True 
 B)False

Question 12

Sole proprietors can look only to their own resources to finance the business operation. They cannot sell shares and are restricted to their own ________ standing when borrowing money to finance the business.

Accepted Answer

A)  asset 
B)  debt 
C)  profit 
D)  credit 
E)  retained earnings 
A)  asset 
B)  debt 
C)  profit 
D)  credit 
E)  retained earnings

Question 13

What are the advantages and disadvantages of being a sole proprietor?

Accepted Answer

Disadvantages include unlimite

Question 14

When the partners fail to register their partnership, they can neither sue nor be sued.

Accepted Answer

A) True 
 B)False

Question 15

It is possible for a principal to be bound by the acts of an independent agent even where no contract of agency exists between them.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Discuss how an agent's authority may be terminated, as well as the effect of such termination.

Accepted Answer

An agent's authority ends as soon as the

Question 18

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 19

Partners are vicariously liable for the wrongful acts of employees committed in partnership business.

Accepted Answer

A) True 
 B)False

Question 20

The biggest issue for a sole proprietor is unlimited liability.

Accepted Answer

A) True 
 B)False

A person owing a fiduciary duty must submerge personal interests in favour of the interests of the principal he or she represents.

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

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

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

Which of the following is incorrect with respect to the law of partnership?

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

The fiduciary duty of an agent refers to his obligations to act within the limits of his actual or apparent authority.

Describe what is meant by an agent's apparent authority.

An agent owes a fiduciary duty to the third party to act in that third party's best interest.

Sole proprietors can look only to their own resources to finance the business operation. They cannot sell shares and are restricted to their own ________ standing when borrowing money to finance the business.

What are the advantages and disadvantages of being a sole proprietor?

When the partners fail to register their partnership, they can neither sue nor be sued.

It is possible for a principal to be bound by the acts of an independent agent even where no contract of agency exists between them.

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

Discuss how an agent's authority may be terminated, as well as the effect of such termination.

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?

Partners are vicariously liable for the wrongful acts of employees committed in partnership business.

The biggest issue for a sole proprietor is unlimited liability.

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 person owing a fiduciary duty must submerge personal interests in favour of the interests of the principal he or she represents.

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

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

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

Which of the following is incorrect with respect to the law of partnership?

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

The fiduciary duty of an agent refers to his obligations to act within the limits of his actual or apparent authority.

Describe what is meant by an agent's apparent authority.

An agent owes a fiduciary duty to the third party to act in that third party's best interest.

Sole proprietors can look only to their own resources to finance the business operation. They cannot sell shares and are restricted to their own ________ standing when borrowing money to finance the business.

What are the advantages and disadvantages of being a sole proprietor?

When the partners fail to register their partnership, they can neither sue nor be sued.

It is possible for a principal to be bound by the acts of an independent agent even where no contract of agency exists between them.

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

Discuss how an agent's authority may be terminated, as well as the effect of such termination.

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?

Partners are vicariously liable for the wrongful acts of employees committed in partnership business.

The biggest issue for a sole proprietor is unlimited liability.

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