Exam 15: Managing a Business: Business Ownership

As the trustee owns the trust property on behalf of the beneficiaries, the trust property is not available to the trustee's creditors in the event of:

An implied trust arises:

The implied authority of each partner to bind the other partners in the partnership does not include authority to:

Which special legislation applies to a sole trader business, as distinct from a business that has another structure?

Doris and Dillon Davies were partners in the crystal jewellery making business, Crystal Balls.Doris was the more outgoing and active partner in the business and Dillon agreed to sell his share to her for $20 000.After the sale, Dillon discovered that Doris had not disclosed to him all of the assets of the business and that his share was in fact worth three times as much as the $20 000 they agreed upon.He threatened to sue her for a breach of her duty to him.Which of the following does not represent a basis on which he might bring a claim against her for breach of her fiduciary duty as a partner?

A trust, as a business structure, need not have:

Jill sets up a trust for the benefit of her grandson, Joe.The trust property - a small hotel - is to be legally owned by the trustee, Jack, for the benefit of Joe.Unfortunately, Joe falls terminally ill and passes away shortly after the trust is established.What happens to the trust property?

Each partner is obliged to act in good faith for the common good of the partnership, which includes an obligation to:

X and Y are partners.Z is a third party who deals with Y.X will not be liable for an act by Y done in the usual way of business of the kind carried on by the partnership if:

If a franchisor breaches the Franchising Code of Conduct, the court is least likely to:

In relation to torts and crimes partners are:

Which of the following best describes the relationship between a franchisee and franchisor?

Which of the following duties is not owed by a trustee to its beneficiaries?

The authority directly and overtly given by all those people in a partnership to a particular partner, orally or in writing, is called that partner's:

The silent partners in a tyre manufacturing business decide to sell their interest to the active partners.In order to calculate a fair price, the silent partners request that their accountant be given access to the partnership archived financial records held at the tyre warehouse under mountains of old boxes.The active partners refuse since the partnership legislation provides only for a right of access to the records by 'a partner'.What is the true position?

Which of the following is not one of the fiduciary obligations of a partner at common law?

Venardos and Aaberg agreed to enter into a partnership to farm kangaroos for their meat and pelts.Aaaberg agreed to pay Venardos $30 000 for a half share in the business.Venardos told Aaaberg that this amount mostly represented the cost of buying the kangaroos.Venardos did not tell Aaaberg that the he had not paid anything for the kangaroos, but had in fact simply saved them from being shot by a farmer who regarded them as a pest on his land and was glad to see them gone.Has Venardos breached any of his fiduciary duties to Aaaberg?

What does a franchisee usually pay to the franchisor in exchange for being allowed to use the franchisor's name, their products and business systems?

'Joint and several liability' of partners means that if a third party sues one partner and recovers some but not all of the full amount of the debt they can:

X and Y buy a house together, each contributing half of the cost.The house is registered in the name of X, that is, X is the legal owner of the house.X will be a trustee and Y will be a beneficiary under: