Question 1

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. D

Question 2

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,troubleshooter,who helped customers over the phone who needed guidance in using the company's software; Ralph,receptionist and purchaser of the office supplies for the company; Keith and Jason,salespeople 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 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 C

Question 3

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. B

Question 4

An "innocent partner" in a limited liability partnership (LLP)is still liable for the ordinary debts of the partnership.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

This is a reasonably straightforward que

Question 6

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

Question 7

John Agent entered into a contract with Joe Third Party to buy 50 stoves,payment to be made two weeks after John Agent picked up the stoves from Joe Third Party's warehouse.The stoves were picked up,but eight weeks later Joe still had not been paid.Joe found out that John Agent had been authorized to buy 50 stoves for Susan Principal.For some reason,John had not made it clear to Joe that he was acting as an agent,nor had he indicated that he was buying the goods for himself.Under the circumstances,which of the following is true?

Accepted Answer

A)  Third Party can successfully sue only Principal. 
B)  Third Party can successfully sue only Agent. 
C)  Third Party can successfully sue both Principal and Agent. 
D)  Third Party can elect to recover from either Principal or Agent but not both. 
E)  Third Party can ratify the contract with Principal. 
A)  Third Party can successfully sue only Principal. 
B)  Third Party can successfully sue only Agent. 
C)  Third Party can successfully sue both Principal and Agent. 
D)  Third Party can elect to recover from either Principal or Agent but not both. 
E)  Third Party can ratify the contract with Principal.

Question 8

When the partners fail to register their partnership,they can neither sue or be sued.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true with respect to the obligations in a partnership relationship?

Accepted Answer

A)  In the absence of agreement to the contrary, when one of the partners is injured, the partnership is dissolved. 
B)  In the absence of agreement to the contrary, the partnership is dissolved when one of the partners serves the others with notice to the effect that he wishes to continue. 
C)  When a partnership is dissolved, each partner can only be forced by a creditor to pay a portion of the debt equal to his share of the capital contributed. 
D)  When one of the partners owes a personal debt not associated with the partnership, that creditor has a claim on her portion of the assets of the partnership. 
E)  A partnership can be dissolved only by court order. 
A)  In the absence of agreement to the contrary, when one of the partners is injured, the partnership is dissolved. 
B)  In the absence of agreement to the contrary, the partnership is dissolved when one of the partners serves the others with notice to the effect that he wishes to continue. 
C)  When a partnership is dissolved, each partner can only be forced by a creditor to pay a portion of the debt equal to his share of the capital contributed. 
D)  When one of the partners owes a personal debt not associated with the partnership, that creditor has a claim on her portion of the assets of the partnership. 
E)  A partnership can be dissolved only by court order.

Question 10

What is an enduring power of attorney?

Accepted Answer

The power to act as

Question 11

A contract entered into by an agent cannot be ratified inadvertently by the principal.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

Vicarious liability is where one person

Question 13

Joe is a salesperson for Harry's Fine Cars Ltd.He had been told specifically that he had no authority to make any sale,take a trade-in,or otherwise deal with the vehicles without the manager's express approval of every deal.Sam,a customer,came in wanting to buy a used Cadillac and agreed to pay the $16 000 asking price.Unfortunately,the manager had left the lot,and so Joe took it upon himself to write up the agreement.When the manager returned,he liked the deal and realized that the customer might change his mind when he realized that the salesman didn't have the authority to bind the seller in contract.Under these circumstances,what could the manager of the car lot do?

Accepted Answer

He can ratify the contract,whi

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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: must disclo

Question 17

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 principal can ra

Question 18

Grant got a job with Ace Computers Co.as a salesperson.He was given a course in sales by Ace,business cards,and several of the company's order forms and brochures,and he was assigned an area in which to sell computers door-to-door on behalf of Ace.Grant would be paid on a commission basis.At his first house,he was so excited by the interest shown that he forgot the explicit instructions he had received-only cash sales permitted.As agent for Ace,he sold a computer on time to a 70-year-old woman.She was to pay $25 per month for eight years because that was all she could afford.When Brown,sales manager of Ace,heard of the deal,he fired Grant and said he would not go through with the contract.However,the purchaser liked the computer very much and insisted that Ace provide her with one within the week as required by the contract.Which of the following accurately describes the legal position of the parties?

Accepted Answer

A)  Ace is not bound by the contract because no representations of authority were made by it to the purchaser. 
B)  Ace would not be bound because Grant failed to follow the exact instructions he had received. 
C)  Ace would be bound because the agent Grant acted within his apparent authority. 
D)  Grant had implied authority to sell computers on time; selling computers necessitates selling on time, despite the prohibition. 
E)  Brown is personally liable to the purchaser because he is the employee of the company who decided not to honour the contract. 
A)  Ace is not bound by the contract because no representations of authority were made by it to the purchaser. 
B)  Ace would not be bound because Grant failed to follow the exact instructions he had received. 
C)  Ace would be bound because the agent Grant acted within his apparent authority. 
D)  Grant had implied authority to sell computers on time; selling computers necessitates selling on time, despite the prohibition. 
E)  Brown is personally liable to the purchaser because he is the employee of the company who decided not to honour the contract.

Question 19

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 20

In which one of the following situations has the duty between partners not been breached?

Accepted Answer

A)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z opens a shoe store in Regina as well. 
B)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z opens up a restaurant in the same city as a sole proprietorship. 
C)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z is the major shareholder in a corporation that sets up a restaurant in the same city. 
D)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z owns 50 percent of the shares in the company that supplies the restaurant with its food supplies. 
E)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z runs a catering business during the evening using the restaurant's facilities. 
A)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z opens a shoe store in Regina as well. 
B)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z opens up a restaurant in the same city as a sole proprietorship. 
C)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z is the major shareholder in a corporation that sets up a restaurant in the same city. 
D)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z owns 50 percent of the shares in the company that supplies the restaurant with its food supplies. 
E)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z runs a catering business during the evening using the restaurant's facilities.

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

An "innocent partner" in a limited liability partnership (LLP)is still liable for the ordinary debts of the partnership.

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

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.

When the partners fail to register their partnership,they can neither sue or be sued.

Which of the following statements is true with respect to the obligations in a partnership relationship?

What is an enduring power of attorney?

A contract entered into by an agent cannot be ratified inadvertently by the principal.

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

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

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

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

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?

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.

In which one of the following situations has the duty between partners not been breached?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters

Exam 11: Agency and Partnership

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

An "innocent partner" in a limited liability partnership (LLP)is still liable for the ordinary debts of the partnership.

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

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.

When the partners fail to register their partnership,they can neither sue or be sued.

Which of the following statements is true with respect to the obligations in a partnership relationship?

What is an enduring power of attorney?

A contract entered into by an agent cannot be ratified inadvertently by the principal.

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

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

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

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

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?

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.

In which one of the following situations has the duty between partners not been breached?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Employment

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters