Question 1

Joe and Mary promote several dances at a community hall and split the profits. Will this be enough to establish a partnership?

Accepted Answer

Yes. The definition of a partnership is two or more people carrying on business with a view to profits. This is an ongoing activity, so it is a business, and they are sharing the profits, so a partnership exists.

Question 2

A recent article in the Lawyers Dia-Blog began: "Step aside, wrongful dismissal: the law of fiduciary duties is where you'll find the hottest legal action these days!" Which of the following is False with regard to the meaning of "fiduciary duty"?

Accepted Answer

A)  Fiduciary law is based on the principle of acting with utmost good faith. 
B)  Fiduciary law governs situations in which one party places trust and confidence in another who consents to act in accordance with that trust. 
C)  In some fields, fiduciary duties are imposed both by the common law and by statute. 
D)  An agent must place the interests of his principal above all except the law. 
E)  The principal owes the agent a fiduciary duty just as the agent owes it to his principal. 
A)  Fiduciary law is based on the principle of acting with utmost good faith. 
B)  Fiduciary law governs situations in which one party places trust and confidence in another who consents to act in accordance with that trust. 
C)  In some fields, fiduciary duties are imposed both by the common law and by statute. 
D)  An agent must place the interests of his principal above all except the law. 
E)  The principal owes the agent a fiduciary duty just as the agent owes it to his principal. E

Question 3

With respect to the formation of agency by estoppel, which of the following statements is true?

Accepted Answer

A)  The issue of apparent authority arises only if a person acts as an agent when he has express or implied authority. 
B)  When a third party suspects that the agent he deals with has no authority, there is no obligation on him to question the agent's alleged authority. 
C)  When a party represents, by words or conduct, that someone is his agent, that party can later deny liability on a contract made for him by that agent on the basis that no express agency agreement existed. 
D)  When a party terminates an express agency agreement with his agent and notifies third parties with whom that agent normally dealt, that party will be liable on a contract made for him by that "fired" agent. 
E)  If the principal tells an agent specifically not to sell something and the agent, in disobedience of those instructions, sells it anyway, the principal may be bound by the contract because of estoppel. 
A)  The issue of apparent authority arises only if a person acts as an agent when he has express or implied authority. 
B)  When a third party suspects that the agent he deals with has no authority, there is no obligation on him to question the agent's alleged authority. 
C)  When a party represents, by words or conduct, that someone is his agent, that party can later deny liability on a contract made for him by that agent on the basis that no express agency agreement existed. 
D)  When a party terminates an express agency agreement with his agent and notifies third parties with whom that agent normally dealt, that party will be liable on a contract made for him by that "fired" agent. 
E)  If the principal tells an agent specifically not to sell something and the agent, in disobedience of those instructions, sells it anyway, the principal may be bound by the contract because of estoppel. E

Question 4

One advantage of sole proprietorships is that under the principle of vicarious liability, the sole proprietor is not responsible for any tort committed by an employee during the course of employment.

Accepted Answer

A) True 
 B)False

Question 5

The Partnership Act allows partners to change their liabilities and obligations to third parties.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

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

Question 7

Which of the following is correct with respect to limited partnerships?

Accepted Answer

A)  Limited partnership refers to the fact that no more than five people are allowed to be partners in such partnerships. 
B)  Limited partnership refers to the fact that limited partnerships can only carry on in certain kinds of businesses. 
C)  Limited partnership refers to the fact that some partners have limited liability. 
D)  Limited partnership refers to the fact that some partnerships are only created for a limited period of time. 
E)  Limited partnership refers to the fact that the partnership can only issue common shares. 
A)  Limited partnership refers to the fact that no more than five people are allowed to be partners in such partnerships. 
B)  Limited partnership refers to the fact that limited partnerships can only carry on in certain kinds of businesses. 
C)  Limited partnership refers to the fact that some partners have limited liability. 
D)  Limited partnership refers to the fact that some partnerships are only created for a limited period of time. 
E)  Limited partnership refers to the fact that the partnership can only issue common shares.

Question 8

Explain the liability of a partner for another partner's actions.

Accepted Answer

Each partner is vicariously liable in to

Question 9

To what does the term "estoppel" refer?

Accepted Answer

To an equitable remedy that st

Question 10

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

Accepted Answer

This statement is inaccurate.

Question 11

When two people enter into a partnership by agreement but neglect to set out the terms of the agreement, or where the parties becomes partners inadvertently, where are the terms and arrangements of that partnership are set out?

Accepted Answer

The terms

Question 12

The relationship between the partners is governed by contract law.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  All profits are shared equally between the partners. 
B)  Reasonable expenses incurred by the partners in the course of business are reimbursed. 
C)  All partners have the right to share in management. 
D)  No major decision can be taken without unanimous agreement of all the partners. 
E)  Partners can sell their share of the partnership to another person without the agreement of the partners. 
A)  All profits are shared equally between the partners. 
B)  Reasonable expenses incurred by the partners in the course of business are reimbursed. 
C)  All partners have the right to share in management. 
D)  No major decision can be taken without unanimous agreement of all the partners. 
E)  Partners can sell their share of the partnership to another person without the agreement of the partners.

Question 14

Claire has been selling her famous cookies on her own to local bakeries. Her cookies are so popular that she needs to hire someone as an employee to help with the packaging and delivery. Claire has taken no formal steps regarding the form of business organization. Which of the following is true about Claire's situation?

Accepted Answer

A)  Claire is unable to legally hire an employee until she takes steps to incorporate. 
B)  Claire will be vicariously liable for the torts of her employee committed during the course of employment. 
C)  The employee that Claire hires will be, in law, a partner in Claire's business. 
D)  The employee that Claire hires will be liable for torts Claire commits during the course of the business. 
E)  Claire's liability is limited to the value of the cookie business. 
A)  Claire is unable to legally hire an employee until she takes steps to incorporate. 
B)  Claire will be vicariously liable for the torts of her employee committed during the course of employment. 
C)  The employee that Claire hires will be, in law, a partner in Claire's business. 
D)  The employee that Claire hires will be liable for torts Claire commits during the course of the business. 
E)  Claire's liability is limited to the value of the cookie business.

Question 15

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 16

Which of the following is the proper definition of a partnership as set out in the Partnership Act?

Accepted Answer

A)  Partnership exists where two or more persons carry on business together with a view towards profits. 
B)  A partnership exists where any business is carried on with a view towards profits. 
C)  A partnership is created where a corporation with shareholders is registered with the federal government. 
D)  A partnership is only created where the partners actually share the profits from a business. 
E)  A partnership exists only where two or more people enter into a written agreement to be partners. 
A)  Partnership exists where two or more persons carry on business together with a view towards profits. 
B)  A partnership exists where any business is carried on with a view towards profits. 
C)  A partnership is created where a corporation with shareholders is registered with the federal government. 
D)  A partnership is only created where the partners actually share the profits from a business. 
E)  A partnership exists only where two or more people enter into a written agreement to be partners.

Question 17

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

Accepted Answer

A)  A sole proprietorship is a separate legal entity with one shareholder. 
B)  A sole proprietorship involves limited liability. 
C)  The sole proprietor is a society under the Societies Act. 
D)  A sole proprietorship involves unlimited liability for the proprietor. 
E)  The sole proprietor is restricted to service type businesses. 
A)  A sole proprietorship is a separate legal entity with one shareholder. 
B)  A sole proprietorship involves limited liability. 
C)  The sole proprietor is a society under the Societies Act. 
D)  A sole proprietorship involves unlimited liability for the proprietor. 
E)  The sole proprietor is restricted to service type businesses.

Question 18

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 19

Explain under what circumstances an agent can be liable for his conduct rather than the principal.

Accepted Answer

Agents are liable personally in agency l

Question 20

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 limited status by participating in management. 
D)  Limited partners can lose their limited status by allowing their names to be associated with the name of the partnership. 
E)  Limited partners can lose their limited status 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 limited status by participating in management. 
D)  Limited partners can lose their limited status by allowing their names to be associated with the name of the partnership. 
E)  Limited partners can lose their limited status by failing to register as such.

Joe and Mary promote several dances at a community hall and split the profits. Will this be enough to establish a partnership?

A recent article in the Lawyers Dia-Blog began: "Step aside, wrongful dismissal: the law of fiduciary duties is where you'll find the hottest legal action these days!" Which of the following is False with regard to the meaning of "fiduciary duty"?

With respect to the formation of agency by estoppel, which of the following statements is true?

One advantage of sole proprietorships is that under the principle of vicarious liability, the sole proprietor is not responsible for any tort committed by an employee during the course of employment.

The Partnership Act allows partners to change their liabilities and obligations to third parties.

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

Which of the following is correct with respect to limited partnerships?

Explain the liability of a partner for another partner's actions.

To what does the term "estoppel" refer?

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

When two people enter into a partnership by agreement but neglect to set out the terms of the agreement, or where the parties becomes partners inadvertently, where are the terms and arrangements of that partnership are set out?

The relationship between the partners is governed by contract law.

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

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 of the following is the proper definition of a partnership as set out in the Partnership Act?

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

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

Explain under what circumstances an agent can be liable for his conduct rather than the principal.

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

Exam 10: Agency and Partnership

Joe and Mary promote several dances at a community hall and split the profits. Will this be enough to establish a partnership?

A recent article in the Lawyers Dia-Blog began: "Step aside, wrongful dismissal: the law of fiduciary duties is where you'll find the hottest legal action these days!" Which of the following is False with regard to the meaning of "fiduciary duty"?

With respect to the formation of agency by estoppel, which of the following statements is true?

One advantage of sole proprietorships is that under the principle of vicarious liability, the sole proprietor is not responsible for any tort committed by an employee during the course of employment.

The Partnership Act allows partners to change their liabilities and obligations to third parties.

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

Which of the following is correct with respect to limited partnerships?

Explain the liability of a partner for another partner's actions.

To what does the term "estoppel" refer?

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

When two people enter into a partnership by agreement but neglect to set out the terms of the agreement, or where the parties becomes partners inadvertently, where are the terms and arrangements of that partnership are set out?

The relationship between the partners is governed by contract law.

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

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 of the following is the proper definition of a partnership as set out in the Partnership Act?

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

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

Explain under what circumstances an agent can be liable for his conduct rather than the principal.

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

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

The End of the Contractual Relationship

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters