Question 1

Winding up involves all but which one of the following?

Accepted Answer

A) Selling assets for cash. 
B) Collecting debts owed to the partnership. 
C) Taking orders for business. 
D) Paying creditors. 
A) Selling assets for cash. 
B) Collecting debts owed to the partnership. 
C) Taking orders for business. 
D) Paying creditors.

Question 2

Aileen,Jamie,and Delmer are partners in a florist shop.If Delmer engages in conduct that makes it not reasonably practicable to carry on the business,the partnership is dissolved by operation of law.

Accepted Answer

A) True 
 B)False

Question 3

Under the RUPA,a partner's dissociation in a term partnership is wrongful if before expiration of the term:

Accepted Answer

A) the partner voluntarily withdraws one month after another partner dies. 
B) the partner dies. 
C) a court determines the partner became incapable of performing her duties under the partnership agreement. 
D) the partner becomes a debtor in bankruptcy. 
A) the partner voluntarily withdraws one month after another partner dies. 
B) the partner dies. 
C) a court determines the partner became incapable of performing her duties under the partnership agreement. 
D) the partner becomes a debtor in bankruptcy.

Question 4

A partner has implied authority to:

Accepted Answer

A) hire and fire employees necessary for operation of the business. 
B) purchase property necessary for the business. 
C) receive performance of obligations due the partnership. 
D) bring legal actions to enforce claims of the partnership. 
E) All of the above. 
A) hire and fire employees necessary for operation of the business. 
B) purchase property necessary for the business. 
C) receive performance of obligations due the partnership. 
D) bring legal actions to enforce claims of the partnership. 
E) All of the above.

Question 5

If a partner has paid more than his share of partnership losses,he has a right of contribution against the partners who have not paid their share.

Accepted Answer

A) True 
 B)False

Question 6

Partners are not required to participate in winding up the partnership.

Accepted Answer

A) True 
 B)False

Question 7

Notification to one partner of any matter relating to partnership affairs is effective immediately as notice to the partnership.

Accepted Answer

A) True 
 B)False

Question 8

A partner is criminally liable for the crimes of her partners.

Accepted Answer

A) True 
 B)False

Question 9

David,Ed,and Fred are partners in the DEF partnership.The partnership is being dissolved,having $200,000 in assets and owing $410,000 to creditors.David contributed $100,000 in capital; Ed contributed $50,000 in capital; and Fred contributed $25,000 in capital.Profits are shared equally.Which of the following is correct with regard to the responsibility of each partner?

Accepted Answer

A) The partners will bear losses equally. 
B) The partners will bear losses in the proportion of their relative capital contributions. 
C) If Ed refuses to contribute to covering the loss and he is out of the jurisdiction, David and Fred must contribute the additional amount necessary to pay DEF's liabilities in the relative proportion of their capital contributions. 
D) Both (b) and (c). 
A) The partners will bear losses equally. 
B) The partners will bear losses in the proportion of their relative capital contributions. 
C) If Ed refuses to contribute to covering the loss and he is out of the jurisdiction, David and Fred must contribute the additional amount necessary to pay DEF's liabilities in the relative proportion of their capital contributions. 
D) Both (b) and (c).

Question 10

Upon dissolution of a partnership,all authority of a partner to act on behalf of the partnership terminates.

Accepted Answer

A) True 
 B)False

Question 11

Under the RUPA,in a term partnership,if within 90 days after any specified cause of dissolution occurs,fewer than half of the remaining partners express their will to wind up the partnership business,the partnership will not dissolve.

Accepted Answer

A) True 
 B)False

Question 12

Much of the law of partnership is the law of agency.

Accepted Answer

A) True 
 B)False

Question 13

Authority that a third person,in view of the circumstances,the conduct of the parties,and a lack of notice or knowledge to the contrary,may reasonably consider to exist is known as:

Accepted Answer

A) actual implied. 
B) apparent. 
C) actual express. 
D) None of the above. 
A) actual implied. 
B) apparent. 
C) actual express. 
D) None of the above.

Question 14

The liability of partners for a tort or breach of trust committed by any partner is unlimited,personal liability.

Accepted Answer

A) True 
 B)False

Question 15

Norma leaves the Tri-County Accounting Partnership.She may immediately compete with the partnership for new clients and may collect and keep the fees she earns from both new clients and from old clients on account of transactions she completes from her partnership with Tri-County.

Accepted Answer

A) True 
 B)False

Question 16

Paul is driving a truck delivering goods for his partnership when he negligently backs into a customer's new car.The customer sues the partnership and recovers $11,000 in damages.What liability do the other partners have for Paul's actions?

Accepted Answer

A) No liability. 
B) Liability based on their capital contributions. 
C) Individual liability but not joint liability. 
D) Joint and several liability. 
A) No liability. 
B) Liability based on their capital contributions. 
C) Individual liability but not joint liability. 
D) Joint and several liability.

Question 17

Under the UPA,absent an agreement otherwise,upon dissolution,a partner is entitled to which of the following after payment of partnership creditors?

Accepted Answer

A) A share of profits in proportion to his capital contribution. 
B) Shares of profits dependent upon the capital and time he contributed to the partnership. 
C) Repayment of his loans to the partnership, capital contribution, and a share of the profits. 
D) The UPA requires that the partners have an agreement or else they must seek a court order distributing the remaining assets. 
A) A share of profits in proportion to his capital contribution. 
B) Shares of profits dependent upon the capital and time he contributed to the partnership. 
C) Repayment of his loans to the partnership, capital contribution, and a share of the profits. 
D) The UPA requires that the partners have an agreement or else they must seek a court order distributing the remaining assets.

Question 18

The withdrawal of a partner in a partnership at will may be either a rightful or wrongful dissociation.

Accepted Answer

A) True 
 B)False

Question 19

Any partner by himself has the power to dissolve a term partnership by giving notice to the other partners.

Accepted Answer

A) True 
 B)False

Question 20

A retiring partner has no way of being discharged from her existing liabilities other than by paying them off.

Accepted Answer

A) True 
 B)False

Exam 31: Operation and Dissolution of General Partnerships

Winding up involves all but which one of the following?

Aileen,Jamie,and Delmer are partners in a florist shop.If Delmer engages in conduct that makes it not reasonably practicable to carry on the business,the partnership is dissolved by operation of law.

Under the RUPA,a partner's dissociation in a term partnership is wrongful if before expiration of the term:

A partner has implied authority to:

If a partner has paid more than his share of partnership losses,he has a right of contribution against the partners who have not paid their share.

Partners are not required to participate in winding up the partnership.

Notification to one partner of any matter relating to partnership affairs is effective immediately as notice to the partnership.

A partner is criminally liable for the crimes of her partners.

Upon dissolution of a partnership,all authority of a partner to act on behalf of the partnership terminates.

Under the RUPA,in a term partnership,if within 90 days after any specified cause of dissolution occurs,fewer than half of the remaining partners express their will to wind up the partnership business,the partnership will not dissolve.

Much of the law of partnership is the law of agency.

Authority that a third person,in view of the circumstances,the conduct of the parties,and a lack of notice or knowledge to the contrary,may reasonably consider to exist is known as:

The liability of partners for a tort or breach of trust committed by any partner is unlimited,personal liability.

Norma leaves the Tri-County Accounting Partnership.She may immediately compete with the partnership for new clients and may collect and keep the fees she earns from both new clients and from old clients on account of transactions she completes from her partnership with Tri-County.

Paul is driving a truck delivering goods for his partnership when he negligently backs into a customer's new car.The customer sues the partnership and recovers $11,000 in damages.What liability do the other partners have for Paul's actions?

Under the UPA,absent an agreement otherwise,upon dissolution,a partner is entitled to which of the following after payment of partnership creditors?

The withdrawal of a partner in a partnership at will may be either a rightful or wrongful dissociation.

Any partner by himself has the power to dissolve a term partnership by giving notice to the other partners.

A retiring partner has no way of being discharged from her existing liabilities other than by paying them off.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

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Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

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International Business Law

Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

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