Question 1

Explain how partnership can be brought to an end.

Accepted Answer

Automatically with the death,bankruptcy,

Question 2

Explain under what circumstances the third party can be sued by the principal in the event of default.

Accepted Answer

When the agent has acted withi

Question 3

Alison told her partners in writing that she would be leaving the law partnership at the current partnership year-end,January 31,2014.At year-end,Alison's partners bought her partnership interest and agreed that she would no longer be liable for any of the prior or subsequent partnership obligations.In February 2014,one of the remaining partners absconded with $2 million held for Mr.Smith,a long-time client,taken in trust in September 2013.Mr.Smith sued the partnership,the partners,and Alison.Given the foregoing facts,which of the following statements is true?

Accepted Answer

A)  Even if Alison gave Mr. Smith actual notice of her leaving the partnership, and he agreed that she would no longer be obligated for the partnership's obligations, she can be held liable to Mr. Smith. 
B)  She has no right to recover any funds she has to pay from her former partners. 
C)  Mr. Smith can recover on his judgment out of the partnership assets. 
D)  After the partnership assets are exhausted, Mr. Smith can recover on his judgment from any one of the remaining partners but not Alison. 
E)  Only the remaining partners, not Alison, have the right to recover anything they have to pay from the absconding partner. 
A)  Even if Alison gave Mr. Smith actual notice of her leaving the partnership, and he agreed that she would no longer be obligated for the partnership's obligations, she can be held liable to Mr. Smith. 
B)  She has no right to recover any funds she has to pay from her former partners. 
C)  Mr. Smith can recover on his judgment out of the partnership assets. 
D)  After the partnership assets are exhausted, Mr. Smith can recover on his judgment from any one of the remaining partners but not Alison. 
E)  Only the remaining partners, not Alison, have the right to recover anything they have to pay from the absconding partner.

Question 4

Which of the following is true in respect of limited liability partnerships (LLPs)?

Accepted Answer

A)  Historically, professionals have relied primarily on incorporation for carrying on business. 
B)  Provincial limited liability partnership legislation has been introduced in various jurisdictions across Canada. 
C)  Professionals are prohibited from operating under a limited liability partnership. 
D)  The main advantage to those carrying on business as an LLP is that potential liability is limited for torts, for breach contract and for breach of trust. 
E)  Unlike limited partners, those operating through LLPs are not burdened with limitations with respect to naming, registration or other requirements. 
A)  Historically, professionals have relied primarily on incorporation for carrying on business. 
B)  Provincial limited liability partnership legislation has been introduced in various jurisdictions across Canada. 
C)  Professionals are prohibited from operating under a limited liability partnership. 
D)  The main advantage to those carrying on business as an LLP is that potential liability is limited for torts, for breach contract and for breach of trust. 
E)  Unlike limited partners, those operating through LLPs are not burdened with limitations with respect to naming, registration or other requirements.

Question 5

Despite its organizational simplicity,sole proprietorships must satisfy many federal,provincial,and municipal requirements to carry on business.List and describe three regulatory requirements.

Accepted Answer

Usually,the name of the business must be

Question 6

An agent owes a fiduciary duty to act in the best interests of the principal and the third party.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is incorrect with respect to the law governing limited partnerships?

Accepted Answer

A)  Limited partners' liability only extends to the amount of money they have invested in the partnership. 
B)  Limited partners, once registered as such, are assured of limited liability. 
C)  Limited partners can lose their status as a limited partner by participating in management. 
D)  Limited partners can lose their status as a limited partners by allowing their names to be associated with the name of the partnership. 
E)  Limited partners can lose their status as a limited partners by failing to register as such. 
A)  Limited partners' liability only extends to the amount of money they have invested in the partnership. 
B)  Limited partners, once registered as such, are assured of limited liability. 
C)  Limited partners can lose their status as a limited partner by participating in management. 
D)  Limited partners can lose their status as a limited partners by allowing their names to be associated with the name of the partnership. 
E)  Limited partners can lose their status as a limited partners by failing to register as such.

Question 8

Unlimited liability means that an investor can lose everything he has invested in a corporation.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is considered to be a separate legal person in law?

Accepted Answer

A)  a sole proprietorship 
B)  a partnership 
C)  a corporation 
D)  an agency 
E)  a professional practice 
A)  a sole proprietorship 
B)  a partnership 
C)  a corporation 
D)  an agency 
E)  a professional practice

Question 11

"For a partnership to exist,the parties must have consented to its creation." Comment on the accuracy of this statement.

Accepted Answer

It is inaccurate.A partnership

Question 12

With regard to liability of partners,which of the following is true?

Accepted Answer

A)  A limited partner has unlimited liability beyond the amount of his initial investment. 
B)  A general partner could not be liable for losses suffered by a client because of misapplication of funds unless she knew about or took part in the misapplication. 
C)  A general partner who retires from the partnership by giving notice of his leaving to the other partners could still be found liable for debt pursuant to a contract made when he was a partner. 
D)  A general partner has limited liability for any loss suffered because of the negligent act (e.g., omission) of one of her partners. 
E)  The partnership, and thus the partners, are liable for any loss suffered because of a tort committed by its employee outside the course of his employment. 
A)  A limited partner has unlimited liability beyond the amount of his initial investment. 
B)  A general partner could not be liable for losses suffered by a client because of misapplication of funds unless she knew about or took part in the misapplication. 
C)  A general partner who retires from the partnership by giving notice of his leaving to the other partners could still be found liable for debt pursuant to a contract made when he was a partner. 
D)  A general partner has limited liability for any loss suffered because of the negligent act (e.g., omission) of one of her partners. 
E)  The partnership, and thus the partners, are liable for any loss suffered because of a tort committed by its employee outside the course of his employment.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Explain under what circumstances a principal will be responsible for the wrongful acts of an agent who's not an employee.

Accepted Answer

When the agent has committed a

Question 15

Which of the following is incorrect with respect the responsibilities of partners to each other?

Accepted Answer

A)  Each partner owes the other partners a fiduciary duty. 
B)  Partners are free to compete with the partnership providing they do it on their own time. 
C)  Any information that one partner learns because of his position in the partnership must be used for the benefit of the partnership, not for personal use. 
D)  Unless the partners have agreed otherwise, profits and losses are shared equally. 
E)  Unless the partners have agreed otherwise, partners' expenses are to be reimbursed. 
A)  Each partner owes the other partners a fiduciary duty. 
B)  Partners are free to compete with the partnership providing they do it on their own time. 
C)  Any information that one partner learns because of his position in the partnership must be used for the benefit of the partnership, not for personal use. 
D)  Unless the partners have agreed otherwise, profits and losses are shared equally. 
E)  Unless the partners have agreed otherwise, partners' expenses are to be reimbursed.

Question 16

In which one of the following situations will the transaction not be binding on the principal?

Accepted Answer

A)  A salesperson at a men's clothing store has heard a rumor that the store will be 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 all of the stock, display cases, and fixtures. The salesperson accepts on behalf of the employer. 
B)  A real estate salesperson, after disclosing the fact to his client, purchases the house the client is selling for himself. 
C)  An employee of a flower shop is sent to the flower market every week to make purchases. This week he is told to buy only roses, but he can't pass up a tremendous deal on daisies and purchases a large quantity of them for the store. 
D)  A chauffeur, going against specific instructions, purchases a new car for his employer. The employer has done nothing to lead the seller to believe the chauffeur has such authority, but is persuaded by the chauffeur to go for a drive before returning the car. 
E)  A truck driver who is not an agent (no actual, implied, or apparent authority) enters into a contract on behalf of his employer to sell his cargo of ripe tomatoes after the truck breaks down and he can't get hold of the boss. 
A)  A salesperson at a men's clothing store has heard a rumor that the store will be 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 all of the stock, display cases, and fixtures. The salesperson accepts on behalf of the employer. 
B)  A real estate salesperson, after disclosing the fact to his client, purchases the house the client is selling for himself. 
C)  An employee of a flower shop is sent to the flower market every week to make purchases. This week he is told to buy only roses, but he can't pass up a tremendous deal on daisies and purchases a large quantity of them for the store. 
D)  A chauffeur, going against specific instructions, purchases a new car for his employer. The employer has done nothing to lead the seller to believe the chauffeur has such authority, but is persuaded by the chauffeur to go for a drive before returning the car. 
E)  A truck driver who is not an agent (no actual, implied, or apparent authority) enters into a contract on behalf of his employer to sell his cargo of ripe tomatoes after the truck breaks down and he can't get hold of the boss.

Question 17

Explain what a retiring partner should do to ensure he is no longer liable for the company's obligations.

Accepted Answer

To avoid being liable for any future ind

Question 18

In which one of the following situations would Sam not be liable for the conduct of his partner,Joe?

Accepted Answer

A)  Joe is in a partnership with Sam in a shoe store, and without telling Sam, Joe opens up a franchise of Kinney's Shoes in an adjoining municipality, which suffers a loss. 
B)  They made it clear in their partnership agreement that they would not be liable for each other's actions. 
C)  Joe, without the knowledge or consent of his partner Sam, purchases a gross of patent leather shoes in the name of the partnership shoe business. 
D)  Joe absconds with trust funds he has accepted from a client in his accounting partnership with Sam. 
E)  Joe is in a partnership with Sam and injures a customer while doing partnership business. 
A)  Joe is in a partnership with Sam in a shoe store, and without telling Sam, Joe opens up a franchise of Kinney's Shoes in an adjoining municipality, which suffers a loss. 
B)  They made it clear in their partnership agreement that they would not be liable for each other's actions. 
C)  Joe, without the knowledge or consent of his partner Sam, purchases a gross of patent leather shoes in the name of the partnership shoe business. 
D)  Joe absconds with trust funds he has accepted from a client in his accounting partnership with Sam. 
E)  Joe is in a partnership with Sam and injures a customer while doing partnership business.

Question 19

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 20

Which of the following statements is true with regard to an agent's duties?

Accepted Answer

A)  A real-estate agent may buy property from a third party if it is at a good price and then sell the property to his principal at a higher price. 
B)  An agent is not entitled to the agreed-upon commission and reasonable expenses undertaken on behalf of his principal in carrying out his duties. 
C)  An agent cannot act for two principals even with the knowledge and consent of those principals. 
D)  An agent must always scrupulously account for moneys coming into her hands on behalf of his principal. 
E)  An agent need not disclose all relevant information to the principal. 
A)  A real-estate agent may buy property from a third party if it is at a good price and then sell the property to his principal at a higher price. 
B)  An agent is not entitled to the agreed-upon commission and reasonable expenses undertaken on behalf of his principal in carrying out his duties. 
C)  An agent cannot act for two principals even with the knowledge and consent of those principals. 
D)  An agent must always scrupulously account for moneys coming into her hands on behalf of his principal. 
E)  An agent need not disclose all relevant information to the principal.

Explain how partnership can be brought to an end.

Explain under what circumstances the third party can be sued by the principal in the event of default.

Which of the following is true in respect of limited liability partnerships (LLPs)?

Despite its organizational simplicity,sole proprietorships must satisfy many federal,provincial,and municipal requirements to carry on business.List and describe three regulatory requirements.

An agent owes a fiduciary duty to act in the best interests of the principal and the third party.

Which of the following is incorrect with respect to the law governing limited partnerships?

Unlimited liability means that an investor can lose everything he has invested in a corporation.

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

Which of the following is considered to be a separate legal person in law?

"For a partnership to exist,the parties must have consented to its creation." Comment on the accuracy of this statement.

With regard to liability of partners,which of the following is true?

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

Explain under what circumstances a principal will be responsible for the wrongful acts of an agent who's not an employee.

Which of the following is incorrect with respect the responsibilities of partners to each other?

In which one of the following situations will the transaction not be binding on the principal?

Explain what a retiring partner should do to ensure he is no longer liable for the company's obligations.

In which one of the following situations would Sam not be liable for the conduct of his partner,Joe?

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

Which of the following statements is true with regard to an agent's duties?

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

Explain how partnership can be brought to an end.

Explain under what circumstances the third party can be sued by the principal in the event of default.

Which of the following is true in respect of limited liability partnerships (LLPs)?

Despite its organizational simplicity,sole proprietorships must satisfy many federal,provincial,and municipal requirements to carry on business.List and describe three regulatory requirements.

An agent owes a fiduciary duty to act in the best interests of the principal and the third party.

Which of the following is incorrect with respect to the law governing limited partnerships?

Unlimited liability means that an investor can lose everything he has invested in a corporation.

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

Which of the following is considered to be a separate legal person in law?

"For a partnership to exist,the parties must have consented to its creation." Comment on the accuracy of this statement.

With regard to liability of partners,which of the following is true?

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

Explain under what circumstances a principal will be responsible for the wrongful acts of an agent who's not an employee.

Which of the following is incorrect with respect the responsibilities of partners to each other?

In which one of the following situations will the transaction not be binding on the principal?

Explain what a retiring partner should do to ensure he is no longer liable for the company's obligations.

In which one of the following situations would Sam not be liable for the conduct of his partner,Joe?

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

Which of the following statements is true with regard to an agent's duties?

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