Question 1

A partnership is less expensive to set up than a corporation.

Accepted Answer

A) True 
 B)False

Question 2

The partners can change the terms of their responsibilities to each other in the partnership agreement,but not in relationship to their obligations to third parties.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the role of the Partnership Act as it relates to people carrying on joint business activities.

Accepted Answer

This question requires students to demon

Question 4

A sole proprietor is free from regulatory control.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Which of the following is a violation of the fiduciary duty of a partner?

Accepted Answer

A)  Where one partner uses information that he has gained from the partnership for the advantage of the partnership. 
B)  Where a partner uses the partnership property for partnership business. 
C)  Where one partner carries on an business unrelated to the partnership with the permission of the partners 
D)  When one partner starts another business without the consent of the other partners which is the same as or in competition with the partnership business 
E)  Where one partner learns of an investment opportunity in the field of the partnership and tells the partners. The partners decline on the opportunity, so he takes advantage of it himself 
A)  Where one partner uses information that he has gained from the partnership for the advantage of the partnership. 
B)  Where a partner uses the partnership property for partnership business. 
C)  Where one partner carries on an business unrelated to the partnership with the permission of the partners 
D)  When one partner starts another business without the consent of the other partners which is the same as or in competition with the partnership business 
E)  Where one partner learns of an investment opportunity in the field of the partnership and tells the partners. The partners decline on the opportunity, so he takes advantage of it himself

Question 7

An agent with no express,implied,or apparent authority to do so identified himself as an agent for his principal,and on behalf of his principal bought a computer.The principal refused to ratify the contract.On these facts,which of the following is true?

Accepted Answer

A)  The principal would have to pay for the computer because the agent was an agent for that principal. 
B)  The agent could be sued by the seller of the computer for breach of his warranty of authority. 
C)  By exceeding his authority, the agent has become the buyer of the computer himself. 
D)  The seller of the computer could sue the agent for breach of contract for saying he was an agent. 
E)  The seller could sue the principal for breach of warranty of authority. 
A)  The principal would have to pay for the computer because the agent was an agent for that principal. 
B)  The agent could be sued by the seller of the computer for breach of his warranty of authority. 
C)  By exceeding his authority, the agent has become the buyer of the computer himself. 
D)  The seller of the computer could sue the agent for breach of contract for saying he was an agent. 
E)  The seller could sue the principal for breach of warranty of authority.

Question 8

Requirement of unanimous consent protects partners.

Accepted Answer

A) True 
 B)False

Question 9

The relationship between the partners is governed by contract law.

Accepted Answer

A) True 
 B)False

Question 10

With respect to the formation of agency by estoppel,which of the following statements is true?

Accepted Answer

A)  The issue of apparent authority arises only if a person acts as an agent when he has express or implied authority. 
B)  When a third party suspects that the agent she deals with has no authority, there is no obligation on her to question the agent's alleged authority. 
C)  When a party represents, by words or conduct, that someone is his agent, that party can later deny liability on a contract made for him by that agent on the basis that no express agency agreement existed. 
D)  When a party terminates an express agency agreement with her agent and notifies third parties with whom that agent normally dealt, that party will be liable on a contract made for her by that "fired" agent. 
E)  If the principal tells an agent specifically not to sell something and the agent, in disobedience of those instructions, sells it anyway, the principal may be bound by the contract because of estoppel. 
A)  The issue of apparent authority arises only if a person acts as an agent when he has express or implied authority. 
B)  When a third party suspects that the agent she deals with has no authority, there is no obligation on her to question the agent's alleged authority. 
C)  When a party represents, by words or conduct, that someone is his agent, that party can later deny liability on a contract made for him by that agent on the basis that no express agency agreement existed. 
D)  When a party terminates an express agency agreement with her agent and notifies third parties with whom that agent normally dealt, that party will be liable on a contract made for her by that "fired" agent. 
E)  If the principal tells an agent specifically not to sell something and the agent, in disobedience of those instructions, sells it anyway, the principal may be bound by the contract because of estoppel.

Question 11

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 12

If an agent breaches his duty to his principal,his principal can sue the agent successfully for

Accepted Answer

A)  breach of warranty of authority. 
B)  breach of the agency agreement. 
C)  breach of agency act. 
D)  wrongful representation. 
E)  the tort of deceit. 
A)  breach of warranty of authority. 
B)  breach of the agency agreement. 
C)  breach of agency act. 
D)  wrongful representation. 
E)  the tort of deceit.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

Distinguish between a partnership and a corporation.

Accepted Answer

A partnership involves two or more peopl

Question 17

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 her 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 her 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 18

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

Accepted Answer

A) True 
 B)False

Question 19

Explain why the law of partnership poses a danger to people carrying on joint business activities.

Accepted Answer

Here students must show that they unders

Question 20

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

Accepted Answer

Students should note that a partnership

A partnership is less expensive to set up than a corporation.

The partners can change the terms of their responsibilities to each other in the partnership agreement,but not in relationship to their obligations to third parties.

Discuss the role of the Partnership Act as it relates to people carrying on joint business activities.

A sole proprietor is free from regulatory control.

Which of the following is a violation of the fiduciary duty of a partner?

An agent with no express,implied,or apparent authority to do so identified himself as an agent for his principal,and on behalf of his principal bought a computer.The principal refused to ratify the contract.On these facts,which of the following is true?

Requirement of unanimous consent protects partners.

The relationship between the partners is governed by contract law.

With respect to the formation of agency by estoppel,which of the following statements is true?

Which of the following is true with regard to partnership?

If an agent breaches his duty to his principal,his principal can sue the agent successfully for

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

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

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

Distinguish between a partnership and a corporation.

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

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

Explain why the law of partnership poses a danger to people carrying on joint business activities.

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

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

A partnership is less expensive to set up than a corporation.

The partners can change the terms of their responsibilities to each other in the partnership agreement,but not in relationship to their obligations to third parties.

Discuss the role of the Partnership Act as it relates to people carrying on joint business activities.

A sole proprietor is free from regulatory control.

Which of the following is a violation of the fiduciary duty of a partner?

An agent with no express,implied,or apparent authority to do so identified himself as an agent for his principal,and on behalf of his principal bought a computer.The principal refused to ratify the contract.On these facts,which of the following is true?

Requirement of unanimous consent protects partners.

The relationship between the partners is governed by contract law.

With respect to the formation of agency by estoppel,which of the following statements is true?

Which of the following is true with regard to partnership?

If an agent breaches his duty to his principal,his principal can sue the agent successfully for

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

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

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

Distinguish between a partnership and a corporation.

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

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

Explain why the law of partnership poses a danger to people carrying on joint business activities.

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

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