Question 1

In the modern economy, agency-by-necessity situations are becoming more commonplace.

Accepted Answer

A) True 
 B)False

Question 2

To what does the term "estoppel" refer?

Accepted Answer

To an equitable remedy that st

Question 3

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

Accepted Answer

Vicarious liability is where one person

Question 4

When a principal is undisclosed, the third party is restricted to suing the agent.

Accepted Answer

A) True 
 B)False

Question 5

Full disclosure refers to an obligation to reveal all details of a transaction.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

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

Question 7

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 8

A sole proprietor is free from regulatory control.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

A principal whose identity is concealed from the third parties with whom the agent is dealing is known
as ________.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.

Accepted Answer

Undisclose

Question 11

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

Accepted Answer

A)  A real estate salesman working for A.E. LePage 
B)  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 
C)  The cashier at London Drugs 
D)  An editor for the Gazette who writes some of the articles and proofreads the final draft of the paper 
E)  The paperboy who sells subscriptions for the Globe and Mail 
A)  A real estate salesman working for A.E. LePage 
B)  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 
C)  The cashier at London Drugs 
D)  An editor for the Gazette who writes some of the articles and proofreads the final draft of the paper 
E)  The paperboy who sells subscriptions for the Globe and Mail

Question 12

"A partnership can be created by the conduct of the parties." Discuss the accuracy of that statement.

Accepted Answer

This is accurate. A partnershi

Question 13

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 the real estate business, 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, investing it in the business of one of his sons rather than an interest-bearing account. The business of the son 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 was a partner with the other

Question 14

Which of the following is an example of an agent's breach of fiduciary duty to his principal?

Accepted Answer

A)  The agent takes presents from the third party and passes them on to the principal. 
B)  An agent for the vendor makes a profit on the transaction he negotiated for his vendor above his commission and doesn't tell his principal/vendor. 
C)  An agent for the vendor collects a commission from the purchaser but told his principal and obtained his consent. 
D)  An agent discloses to his principal/vendor that he is giving some of his commission to the purchaser to induce the purchaser to sign the contract that the principal/vendor wants. 
E)  An agent negotiates a higher price than the highest sale price reasonably possible at that time. 
A)  The agent takes presents from the third party and passes them on to the principal. 
B)  An agent for the vendor makes a profit on the transaction he negotiated for his vendor above his commission and doesn't tell his principal/vendor. 
C)  An agent for the vendor collects a commission from the purchaser but told his principal and obtained his consent. 
D)  An agent discloses to his principal/vendor that he is giving some of his commission to the purchaser to induce the purchaser to sign the contract that the principal/vendor wants. 
E)  An agent negotiates a higher price than the highest sale price reasonably possible at that time.

Question 15

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 16

Paul and Laurie both worked at the mall. They often discussed how frequently they make the decision for the customer as to what should be bought as a gift. They concluded that knowing the merchandise in all the stores as well as they did, they could make a lot of money by doing Christmas shopping for customers. They discussed the idea at length. Laurie's mom, a buyer for a department store in the mall, referred some customers to them. With more and more customers, they wanted to quit their jobs and devote more time to this new business. Laurie's mom would give them $2000, but doesn't want her liability to go beyond that. On these facts, which of the following is true?

Accepted Answer

A)  To protect themselves, all of them should be limited partners. 
B)  The only way to limit one's liability is to incorporate. 
C)  Laurie's mother cannot be a limited partner, because it takes four or more general partners before a firm can have a limited partner. 
D)  If Laurie's mom does not follow the statutory provisions governing limited partnerships, she could be deemed a general partner and liable for claims beyond her $2000 investment. 
E)  As long as Laurie's mother does not buy on behalf of the customers hiring Paul and Laurie, she can continue to provide services to them, such as by sending them customers, and can advise them on marketing and other management problems, and not lose a limited partnership status. 
A)  To protect themselves, all of them should be limited partners. 
B)  The only way to limit one's liability is to incorporate. 
C)  Laurie's mother cannot be a limited partner, because it takes four or more general partners before a firm can have a limited partner. 
D)  If Laurie's mom does not follow the statutory provisions governing limited partnerships, she could be deemed a general partner and liable for claims beyond her $2000 investment. 
E)  As long as Laurie's mother does not buy on behalf of the customers hiring Paul and Laurie, she can continue to provide services to them, such as by sending them customers, and can advise them on marketing and other management problems, and not lose a limited partnership status.

Question 17

Frank asked Matt to join him in a business venture. Matt has heard that partnership could result in some harsh consequences. Which of the following statements he has heard about the liability of partners is false?

Accepted Answer

A)  Matt could be liable for losses suffered by a client whose funds were misappropriated by Frank even if he (Matt) were not aware of the misappropriation and had no part in it. 
B)  A partner is not liable for any partnership debt that was incurred after he left as long as he gave notice in writing to his partner that he was retiring from the partnership. 
C)  A partner is liable to the full extent of his personal fortune if an employee of the firm was negligent in the course of his duties and there were insufficient partnership funds to cover the resulting loss. 
D)  A partner has unlimited liability for any loss suffered by the partnership because of a negligent act by one of the partners if the partnership funds are insufficient to cover the loss. 
E)  A partner is an agent for the firm and the other partner, and thus Matt would be liable for a contract made by Frank on behalf of the partnership if the partnership funds could not cover it. 
A)  Matt could be liable for losses suffered by a client whose funds were misappropriated by Frank even if he (Matt) were not aware of the misappropriation and had no part in it. 
B)  A partner is not liable for any partnership debt that was incurred after he left as long as he gave notice in writing to his partner that he was retiring from the partnership. 
C)  A partner is liable to the full extent of his personal fortune if an employee of the firm was negligent in the course of his duties and there were insufficient partnership funds to cover the resulting loss. 
D)  A partner has unlimited liability for any loss suffered by the partnership because of a negligent act by one of the partners if the partnership funds are insufficient to cover the loss. 
E)  A partner is an agent for the firm and the other partner, and thus Matt would be liable for a contract made by Frank on behalf of the partnership if the partnership funds could not cover it.

Question 18

Explain what is meant by an undisclosed principal and the significance of such a relationship.

Accepted Answer

An undisclosed principal is involved whe

Question 19

In which one of the following situations is the principal not responsible for the conduct of his agent?

Accepted Answer

A)  In his job selling vacuum cleaners for Ace Vacuums Ltd., Joe drove his car carelessly and hit a pedestrian on his way to deliver a vacuum cleaner to a customer. He was an independent agent. 
B)  When selling vacuum cleaners for Ace Vacuums Ltd., Joe lied to the customer about the qualities of the vacuum being sold. He was an independent agent. 
C)  In his job selling vacuum cleaners for Ace Vacuums Ltd., Joe drove his car carelessly and hit a pedestrian on his way to deliver a vacuum cleaner to a customer. He was an employee of Ace. 
D)  When selling vacuum cleaners for Ace Vacuums Ltd., Joe lied to the customer about the qualities of the vacuum being sold. He was an employee of Ace. 
E)  When driving the employer's car to sell vacuums to a customer, Joe hit a pedestrian. Joe was an employee. 
A)  In his job selling vacuum cleaners for Ace Vacuums Ltd., Joe drove his car carelessly and hit a pedestrian on his way to deliver a vacuum cleaner to a customer. He was an independent agent. 
B)  When selling vacuum cleaners for Ace Vacuums Ltd., Joe lied to the customer about the qualities of the vacuum being sold. He was an independent agent. 
C)  In his job selling vacuum cleaners for Ace Vacuums Ltd., Joe drove his car carelessly and hit a pedestrian on his way to deliver a vacuum cleaner to a customer. He was an employee of Ace. 
D)  When selling vacuum cleaners for Ace Vacuums Ltd., Joe lied to the customer about the qualities of the vacuum being sold. He was an employee of Ace. 
E)  When driving the employer's car to sell vacuums to a customer, Joe hit a pedestrian. Joe was an employee.

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 is the major shareholder in a corporation that sets up a restaurant in the same city. 
B)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z owns 50% of the shares in the company that supplies the restaurant with its food supplies. 
C)  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. 
D)  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. 
E)  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. 
A)  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. 
B)  X, Y, and Z have a partnership in a restaurant business in Winnipeg. Unknown to his partners, Z owns 50% of the shares in the company that supplies the restaurant with its food supplies. 
C)  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. 
D)  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. 
E)  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.

In the modern economy, agency-by-necessity situations are becoming more commonplace.

To what does the term "estoppel" refer?

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

When a principal is undisclosed, the third party is restricted to suing the agent.

Full disclosure refers to an obligation to reveal all details of a transaction.

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

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.

A sole proprietor is free from regulatory control.

Which of the following is incorrect 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 as ________. ESSAY. Write your answer in the space provided or on a separate sheet of paper.

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

"A partnership can be created by the conduct of the parties." Discuss the accuracy of that statement.

Which of the following is an example of an agent's breach of fiduciary duty to his principal?

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

Frank asked Matt to join him in a business venture. Matt has heard that partnership could result in some harsh consequences. Which of the following statements he has heard about the liability of partners is false?

Explain what is meant by an undisclosed principal and the significance of such a relationship.

In which one of the following situations is the principal not responsible for the conduct of his agent?

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 Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

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

In the modern economy, agency-by-necessity situations are becoming more commonplace.

To what does the term "estoppel" refer?

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

When a principal is undisclosed, the third party is restricted to suing the agent.

Full disclosure refers to an obligation to reveal all details of a transaction.

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

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.

A sole proprietor is free from regulatory control.

Which of the following is incorrect 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 as ________. ESSAY. Write your answer in the space provided or on a separate sheet of paper.

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

"A partnership can be created by the conduct of the parties." Discuss the accuracy of that statement.

Which of the following is an example of an agent's breach of fiduciary duty to his principal?

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

Frank asked Matt to join him in a business venture. Matt has heard that partnership could result in some harsh consequences. Which of the following statements he has heard about the liability of partners is false?

Explain what is meant by an undisclosed principal and the significance of such a relationship.

In which one of the following situations is the principal not responsible for the conduct of his agent?

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 Disputes the Courts and Alternatives to Litigation

Intentional Torts

Negligence, Professional Liability, and Insurance Law

Formation of Contracts

Formation of Contracts Continued

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