Exam 27: All Forms of Partnerships

General principles of agency law pertain to a partner's authority to bind a partnership in contract.

Rick and Sandy are limited partners in Total Profit Enterprises,a limited partnership.To avoid personal liability for partnership obligations,they must not

In a limited partnership,the liability of a general partner is limited to the amount of capital he or she has invested in the partnership.

A partner's fiduciary duties may be waived or eliminated in the partnership agreement.

Bret is a general partner in Capitol Realty,LLLP,a limited liability limited partnership,which cannot pay its debts.Bret is personally liable for the debts

Fern and Gray want to form a limited partnership to manage two restaurants: Café Latte and Deli Delite.In most states,a limited partnership will be created when

In a limited liability limited partnership,the liability of a general partner is the same as the liability of a limited partner.

Fay is admitted to Global Associates,an existing partnership.A partnership debt incurred before the date of her admission comes due.Fay is

A partner cannot "wrongfully" dissociate from a partnership.

In winding up a general partnership,creditors are paid before partners receive their capital contributions.

A partner owes a partnership and its partners a duty of gross negligence and reckless conduct.

Bo and Clancy decide to do business as Marketing & Promotion Services.To be a partnership,this association can result from an agreement that is

A general partner has the power to dissociate from a limited partnership regardless of what the partnership agreement specifies.

With a few exceptions,all of the rules that govern partnerships apply to limited liability partnerships.

Mead,Nero,and Olen do business as Pipe & Plumbing Services.After Mead's relationship to the firm ends,Nero and Olen agree to discontinue the business.This is

Erte,a partner in Fluoride Dental Associates,applies for a loan with Great State Bank allegedly on Fluoride's behalf but without the authorization of the other partners.Great State knows that Erte is not authorized to take out the loan.Erte's default on the loan results in

A corporation can be a partner.

The Uniform Commercial Code governs the operation of partnerships.

Clu,Dolf,and Elton do business as Fertile Valley Farm.Clu's relationship to the firm ends,but it continues to do business.This is

A partner may not pursue his or her own interest without violating the fiduciary duties that he or she owes to the firm.