Exam 9: The Organization of a Business

An agent who has been authorized to sell property and owing to a failure to make reasonable inquires as to its value sells it for half of the current market value, has breached which of the following legal duties?

Which of the following does not belong in this group?

Two students agree to run Saturday dances and to split whatever money they make. There is absolutely no talk of partnership. Which of the following is TRUE?

Moe, an electrical contractor, authorized Larry to make contracts with new customers on his behalf. Larry entered into a contract with Curly but did not advise Curly that he was acting on behalf of Moe. If Moe refuses to honour the contract, which of the following statements is TRUE?

Your partner unexpectedly dies. Your partnership agreement has a buy-sell clause with a "shotgun" provision. Which of the following is TRUE?

Which of the following statements with respect to partnership is TRUE?

Tony Gennaro and Sal Mineola buy old cars and repair and sell them. They split the cost of buying the cars and the proceeds of sale. They never agree to be partners. One car has defective brakes and a pedestrian is injured as a result. Tony worked alone on buying, repairing, and selling this car. The pedestrian sues the car owner, who in turn sues Tony and Sal. Which of the following is TRUE?

Dorothy Drache and Camina Burana are students. Dorothy has a portable sound system and Camina has business contacts with banquet halls. They agree to run a disc jockey business on weekends. Each will get $100 for a job they do personally and any excess profits will be split 50/50. There is no mention of a partnership, no agreement is signed, and no registration is made. Which of the following is TRUE?

Brant Ranger, Paula Potts and Matthew Lane are all tax lawyers and partners in Ranger Potts & Lane LLP. They practiced together and were successful for many years before the partnership ran into difficulties. Lane was retained by Phillip Schooner, a wealthy client. Lane acted negligently for Schooner in several income tax transactions which breached the Income Tax Act and caused millions of dollars in losses to Schooner. Schooner brought a legal action over this. Which of the followings statements is TRUE? Schooner can claim against

Two people own a piece of land together and share profits associated with renting the property but have agreed that neither can sell the property without the consent of the other. What is the legal form of business arrangement that applies here?

A limited partnership may have:

Legislation enacted in several provinces to protect franchisees usually require the franchisor to

Which of the following could NOT be used to determine the value of a partnership if the partners decide to break up the business?

Maury Slater and Harry Katz operate a clothing store as a partnership. They agree that they will not order over $10,000 without having both signatures on the order. Maury is on vacation when Harry orders $20,000 worth of shirts and $5,000 worth of CDs. Maury objects to both purchases and wants to return the goods. The suppliers sue Maury and Harry. What are the partnership's obligations?

Which of the following is NOT a duty imposed by the law on an agent:

A limited partnership is one in which some of the partners limit their liability to the amount of their capital contributions and are active in the conduct of the business

The "indoor management rule" refers to the principle that a person dealing with a corporation is entitled to assume that its internal rules have been complied with unless it is clear that such is not the case.

You are considering buying a Freakin' Fried Chicken franchise. What should you do before proceeding in order to protect your interest?

An agent who has been authorized to sell property and who in exchange for selling the property below market value, secretly receives a payment from the buyer, has breached which of the following duties?

Dalma, Theo, and Lavinia operated a courier service in partnership. One day while on a delivery, Dalma's truck mounted the curb and drove over the foot of a pedestrian standing on the sidewalk. Dalma was unaware of the accident and drove off. The next day, having looked up the partnership's phone number from the name of the side of the truck, Sanjay, the injured pedestrian, telephoned and advised Theo that he had been injured by one of the partnership's delivery trucks the day before. Theo truthfully responded that he had not heard a report of any accident and hung up the phone. Which of the following is TRUE?