Question 1

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

Accepted Answer

Each partner has unlimited liability for

Question 2

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

Accepted Answer

A)  The beneficiary of a deceased partner takes that partner's share of the income from the partnership. 
B)  A debt is repaid by the creditor taking a share of the profits. 
C)  An employee receives a profit-sharing bonus. 
D)  The good will portion of the sale of a business is repaid by a share of the profits. 
E)  The parties intend to share the expenses of the business. 
A)  The beneficiary of a deceased partner takes that partner's share of the income from the partnership. 
B)  A debt is repaid by the creditor taking a share of the profits. 
C)  An employee receives a profit-sharing bonus. 
D)  The good will portion of the sale of a business is repaid by a share of the profits. 
E)  The parties intend to share the expenses of the business.

Question 3

An "innocent partner" in a limited liability partnership (LLP) is still liable for the ordinary debts of the partnership.
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Accepted Answer

A) True 
 B)False

Question 4

Reese Publishing Inc. hosts a golf tournament. In attendance are Jennifer Reese, the owner, director, and
Manager of Reese Publishing Inc.; her husband, Aaryn, a professional race-car driver and voracious reader who reads everything Reese Publishing Inc. publishes; her sales force, Laura, Catherine, and Keighla (each of whom signed deals that day); Gena, the office manager, who is responsible for all of the company's office supply purchases. Which of these are agents?

Accepted Answer

A)  Only Laura, Catherine, Keighla, and Gena 
B)  Only Laura, Catherine and Keighla 
C)  All of them are agents, except Aaryn 
D)  All of them are agents 
E)  None of them are agents 
A)  Only Laura, Catherine, Keighla, and Gena 
B)  Only Laura, Catherine and Keighla 
C)  All of them are agents, except Aaryn 
D)  All of them are agents 
E)  None of them are agents

Question 5

Which of the following statements is correct with respect to the Partnership Act?

Accepted Answer

A)  The Partnership Act states clearly that a partnership is only created by specific agreement between the partners to that effect. 
B)  The Partnership Act sets out provisions that will govern the relations between the partners unless those partners have agreed otherwise. 
C)  When in conflict, the terms of the federal Partnership Act overrides the provincial partnership acts. 
D)  The Partnership Act always overrides any provisions contrary to it set out by the partners in the partnership agreement. 
E)  The Canadian Partnership Act is enacted by the federal government and creates a uniform and cohesive system of partnership law for all of Canada. 
A)  The Partnership Act states clearly that a partnership is only created by specific agreement between the partners to that effect. 
B)  The Partnership Act sets out provisions that will govern the relations between the partners unless those partners have agreed otherwise. 
C)  When in conflict, the terms of the federal Partnership Act overrides the provincial partnership acts. 
D)  The Partnership Act always overrides any provisions contrary to it set out by the partners in the partnership agreement. 
E)  The Canadian Partnership Act is enacted by the federal government and creates a uniform and cohesive system of partnership law for all of Canada.

Question 6

Joe and Sam were in business school together in college, and after they graduated decided to open an ice-cream store in a mall together. They had skipped the classes where they were taught about different methods and forms of carrying on business and so gave no thought as to how they would structure their relationship. Which of the following is true with respect to the legal positions of Joe and Sam?

Accepted Answer

A)  If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, he must share any profits he makes with Joe. 
B)  If a customer were injured because of poorly kept food and Sam did not have the assets to pay his half, Joe would only have to pay for his half of the damages suffered. 
C)  Sam and Joe are not in a partnership since they have not specifically agreed to be. 
D)  If Sam were to find a great deal on anchovy ice-cream and purchase 2,000 litres of it, only Sam would be liable for the debt incurred as a result of the purchase. 
E)  If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, Joe would be liable for any losses he suffered along with Sam. 
A)  If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, he must share any profits he makes with Joe. 
B)  If a customer were injured because of poorly kept food and Sam did not have the assets to pay his half, Joe would only have to pay for his half of the damages suffered. 
C)  Sam and Joe are not in a partnership since they have not specifically agreed to be. 
D)  If Sam were to find a great deal on anchovy ice-cream and purchase 2,000 litres of it, only Sam would be liable for the debt incurred as a result of the purchase. 
E)  If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, Joe would be liable for any losses he suffered along with Sam.

Question 7

What is the effect of a partnership agreement with a term making it clear that each partner will only be responsible for 1/3 of the debts and obligations?

Accepted Answer

A partnership agreement cannot change th

Question 8

Which one of the following is correct with respect to the rights of partners unless they have agreed otherwise?

Accepted Answer

A)  No major decision can be taken without a majority vote agreement of all the partners. 
B)  Only the partners that have contributed the largest capital amount have the right to share in management. 
C)  Personal expenses incurred by the partners in the course of business are reimbursed. 
D)  All profits are shared equally between the partners. 
E)  Partners can sell their share of the partnership to another person without the agreement of the partners. 
A)  No major decision can be taken without a majority vote agreement of all the partners. 
B)  Only the partners that have contributed the largest capital amount have the right to share in management. 
C)  Personal expenses incurred by the partners in the course of business are reimbursed. 
D)  All profits are shared equally between the partners. 
E)  Partners can sell their share of the partnership to another person without the agreement of the partners.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following statements is correct with respect to sole proprietorships?

Accepted Answer

A)  The sole proprietor is responsible for the torts committed by an employee that take place during the course of business. 
B)  The sole proprietor has limited liability. 
C)  The sole proprietor need not adhere to any licensing and government regulations. 
D)  The sole proprietor has the same extent of liability as a shareholder. 
E)  The sole proprietor must consult with the other owners before making any major decisions regarding the business. 
A)  The sole proprietor is responsible for the torts committed by an employee that take place during the course of business. 
B)  The sole proprietor has limited liability. 
C)  The sole proprietor need not adhere to any licensing and government regulations. 
D)  The sole proprietor has the same extent of liability as a shareholder. 
E)  The sole proprietor must consult with the other owners before making any major decisions regarding the business.

Question 11

A partner's liability for the torts of their partners extends beyond those committed on company business.

Accepted Answer

A) True 
 B)False

Question 12

The relationship between the partners is governed by contract law.

Accepted Answer

A) True 
 B)False

Question 13

If a person wants to invest in a partnership but avoid the obligations associated with partnership, what can she do?

Accepted Answer

She can invest as a limited partner. To

Question 14

Explain how the principle of estoppel can be important in an agency relationship.

Accepted Answer

The authority of the agent to bind the p

Question 15

Explain how partnership can be brought to an end.

Accepted Answer

Automatically with the death, bankruptcy

Question 16

Which of the following is correct with respect to the agency relationship?

Accepted Answer

A)  For an agency contract to be valid, it must be in writing. 
B)  Agents are those who act on behalf of others but are not employees. 
C)  The agency relationship must be created by contract. 
D)  No agency can be created without the consent of the principal. 
E)  An agency agreement in writing and under seal is called a power of attorney. 
A)  For an agency contract to be valid, it must be in writing. 
B)  Agents are those who act on behalf of others but are not employees. 
C)  The agency relationship must be created by contract. 
D)  No agency can be created without the consent of the principal. 
E)  An agency agreement in writing and under seal is called a power of attorney.

Question 17

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

Accepted Answer

A)  Partners are only responsible for contracts entered into by their partnership if the third party knew that the person they were dealing with was a partner in the partnership. 
B)  Partners are responsible for any contracts entered into by their partners related to the partnership business. 
C)  Partners cannot bind their partners in contract without specific written authority. 
D)  A partner is responsible for contracts with third parties entered into by their partners only where it has been clearly stated by the partner to the third party that he is entering the contract on behalf of the partnership. 
E)  Every partner is responsible for every contract entered into by his partner. 
A)  Partners are only responsible for contracts entered into by their partnership if the third party knew that the person they were dealing with was a partner in the partnership. 
B)  Partners are responsible for any contracts entered into by their partners related to the partnership business. 
C)  Partners cannot bind their partners in contract without specific written authority. 
D)  A partner is responsible for contracts with third parties entered into by their partners only where it has been clearly stated by the partner to the third party that he is entering the contract on behalf of the partnership. 
E)  Every partner is responsible for every contract entered into by his partner.

Question 18

Explain how the authority of an agent may be terminated.

Accepted Answer

Such authority is usually terminated by

Question 19

Ratification of a contract can take place by the principal knowingly taking a benefit under the contract.

Accepted Answer

A) True 
 B)False

Question 20

If you hire Gnowsky to act as your agent, which of the following is true with regard to the duties which he owes to you?

Accepted Answer

A)  An agent may delegate his authority without the authorization of his principal. 
B)  His failure to obey you and to act within the authority given him would allow you to sue him for breach of contract. 
C)  Gnowsky need not use reasonable care, skill, and diligence in his service to you. 
D)  Gnowsky need not tell you everything relevant to his task that a reasonable person would consider might affect your decision making. 
E)  Even when Gnowsky is acting as your agent, he need not put your interest above his own. 
A)  An agent may delegate his authority without the authorization of his principal. 
B)  His failure to obey you and to act within the authority given him would allow you to sue him for breach of contract. 
C)  Gnowsky need not use reasonable care, skill, and diligence in his service to you. 
D)  Gnowsky need not tell you everything relevant to his task that a reasonable person would consider might affect your decision making. 
E)  Even when Gnowsky is acting as your agent, he need not put your interest above his own.

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

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

An "innocent partner" in a limited liability partnership (LLP) is still liable for the ordinary debts of the partnership. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Which of the following statements is correct with respect to the Partnership Act?

What is the effect of a partnership agreement with a term making it clear that each partner will only be responsible for 1/3 of the debts and obligations?

Which one of the following is correct with respect to the rights of partners unless they have agreed otherwise?

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

Which one of the following statements is correct with respect to sole proprietorships?

A partner's liability for the torts of their partners extends beyond those committed on company business.

The relationship between the partners is governed by contract law.

If a person wants to invest in a partnership but avoid the obligations associated with partnership, what can she do?

Explain how the principle of estoppel can be important in an agency relationship.

Explain how partnership can be brought to an end.

Which of the following is correct with respect to the agency relationship?

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

Explain how the authority of an agent may be terminated.

Ratification of a contract can take place by the principal knowingly taking a benefit under the contract.

If you hire Gnowsky to act as your agent, which of the following is true with regard to the duties which he owes to you?

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

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

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

An "innocent partner" in a limited liability partnership (LLP) is still liable for the ordinary debts of the partnership. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Which of the following statements is correct with respect to the Partnership Act?

What is the effect of a partnership agreement with a term making it clear that each partner will only be responsible for 1/3 of the debts and obligations?

Which one of the following is correct with respect to the rights of partners unless they have agreed otherwise?

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

Which one of the following statements is correct with respect to sole proprietorships?

A partner's liability for the torts of their partners extends beyond those committed on company business.

The relationship between the partners is governed by contract law.

If a person wants to invest in a partnership but avoid the obligations associated with partnership, what can she do?

Explain how the principle of estoppel can be important in an agency relationship.

Explain how partnership can be brought to an end.

Which of the following is correct with respect to the agency relationship?

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

Explain how the authority of an agent may be terminated.

Ratification of a contract can take place by the principal knowingly taking a benefit under the contract.

If you hire Gnowsky to act as your agent, which of the following is true with regard to the duties which he owes to you?

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