Chapter 32, Chapter 28, Chapter 31, Business Law Chapter 34
Jolene hired Lacy to find a buyer for her house. Adam was interested in buying the house. If both Jolene and Adam agree, Lacy, a real estate agent, may represent both parties.
T
Kaiya is a sales representative of TriColor. Kaiya owes a fiduciary duty to TriColor.
T
Kyle, Pedro, and Madeline form a partnership. There is no agreement as to the duration of the partnership. The partnership is a partnership at will.
T
An agency relationship can be created: a. by the conduct of the parties. b. by an oral agreement in all circumstances. c. only by a written agreement. d. only by the meeting of all the standards of contract law.
A
A group of accounting alumni decided to hold a fund-raiser to establish a scholarship for an accounting student. This enterprise is: a. a limited partnership. b. a partnership. c. a charitable partnership. d. None of the above
D
Anne and Mike were winding up their partnership. Mike was approached by a person who wanted the partnership to do some work for him. Mike agreed that the partnership would do the work. Generally speaking, in such a situation: a. Anne is not liable since the partnership was in the winding up phase. b. Anne is not liable since she did not consent to the work. c. Anne is not liable since Mike's conduct was wrongful. d. Anne is liable unless she filed a statement of dissolution with the Secretary of State within 90 days of when Mike entered the contract
D
Art and Alma made capital contributions of 60% and 40% respectively to their newly formed partnership, AA & Associates. They did not have a written partnership agreement. At the end of the first year, the partnership made a profit of which Alma now claims half. However, Art maintains he should receive 60%. Who is correct? a. Art, since the UPA presumes that profits and losses are divided in proportion to capital contribution. b. Art, since it would only be fair. c. Alma, because she works in the business. d. Alma, as the UPA provides that profits are split equally unless the partners agree otherwise.
D
Corporations have perpetual existence.
T
Cameron, editor of the local newspaper, assigned to Jim the writing of a story about pollution of a nearby stream. Although Jim used reasonable care in gathering and checking his information, unknown to Jim, the story contained a defamatory statement about Maureen. Maureen reads the story and sues Jim for libel. Cameron, who read and published the story: a. must indemnify Jim for Maureen's claim. b. need not indemnify Jim for Maureen's claim because Jim should have checked his facts more carefully. c. need not indemnify Jim for Maureen's claim because Jim breached his duty to obey instructions. d. can recover damages from Jim for any injury to the newspaper resulting from Jim's story.
A
John hired Tim to sell his house. Which statement is correct? a. John is Tim's principal. b. Tim, but not John, can terminate the agency. c. This illustrates a power coupled with an interest. d. All the above are correct.
A
In the case of Hooper v. Hooper, the court found: a. when the partnership was dissolved, one partner was entitled to property in kind in an amount by which his services had enhanced the value of the partnership. b. when one partner unexpectedly became unable to contribute services and time to the partnership, there was an implied agreement that the other partner would be paid for the extra services he performed for the partnership. c. the fact that one partner contributes greater skill and takes over management of a partnership business does not give rise to a right to extra compensation. d. although the partners had an express agreement to pay one partner for extra services rendered to the partnership, such an agreement is unenforceable.
C
Kayla and Marshall formed a partnership. Marshall incurred a debt in the ordinary course of the partnership business. If the debt is not paid, the creditor may sue: a. only Marshall. b. only the partnership. c. the partnership and the partners together or in separate lawsuits or in any combination. d. only Marshall and the partnership in a lawsuit together or the creditor loses any right to sue the partnership.
C
Debbie is a partner with Adam and Marty. She sells her interest in the partnership to Craig. Which statement below is the most accurate? a. Adam and Marty must approve the sale for Craig to become a full partner. b. Either Adam or Marty must approve the sale of Debbie's interest. c. Craig has a right to become a full partner once he buys Debbie's interest. d. None of the above is correct.
A
Ending a partnership involves which of the following three steps? a. Dissolution, winding up, and termination. b. Dissociation, winding down, and consummation. c. Failure, dividing up, and paying off. d. Dissociation, agreement, and dissolution.
A
Jackie and Robert own an apartment building as partners. Cyndi, one of their tenants, gives Robert written notice she will be moving out at the end of the following month. Robert did not tell Jackie that Cyndi was moving. Has Cyndi properly given notice to the partnership? a. Yes. Notice to Robert was notice to the partnership. b. Yes, if it is determined that Robert acted negligently in failing to notify Jackie. c. No. Cyndi has an obligation to notify both Robert and Jackie. d. No. Jackie was not notified since Robert never told her Cyndi was moving.
A
Jim agreed to show Donna's car to a potential buyer. Donna was not able to be home since she had to attend a meeting. After showing the car, Jim left the keys in it and the car was stolen. Which statement is correct? a. Since Jim is a gratuitous agent, he will only be liable for the loss of the car if his conduct constitutes gross negligence. b. Since Jim is a gratuitous agent, he will be liable for the loss of the car if his conduct constitutes ordinary negligence. c. Since Jim is a gratuitous agent, he has no liability for the car. d. Since Jim is a gratuitous agent, he is strictly liable for the loss of the car.
A
Judy believed that Ray and Don were partners in an automotive repair business. Ray and Don were not partners. Ray owned the business as a sole proprietor. Ray, however, allowed Don, his unemployed brother-in-law, to be around the business. When Judy was having her car repaired, Ray told her "my partner over there, Don, will give you a ride to work this morning so you can leave your car here. He will give you a ride back here after work and your car will be done." Judy allowed Don to drive her to work. While riding with Don, Don accidentally ran a stop light and caused an accident. Judy was hurt and claims that both Don and Ray are liable to her. Is she right? a. Yes. This illustrates a partnership by estoppel. b. No. Don was not a partner in the business. c. No. Don was a dissociated partner. d. No. There was no intent to have a partnership.
A
Mrs. O'Leary hired Jenna to sell her house in Michigan. She executed a power of attorney in favor of Jenna authorizing her to do "anything and everything associated with the sale of real estate, acting as a prudent person." On May 30, Jenna finalized a deal with Brandon for the purchase of the house. Brandon and Jenna signed the real estate contract that day. Jenna learned the next day that Mrs. O'Leary had died May 29. a. The contract is void since the agency terminated May 29. b. The contract is valid since the agency's purpose was achieved before Jenna was notified of Mrs. O'Leary's death. c. The contract is voidable at the option of Mrs. O'Leary's estate. d. The contract is voidable at the option of Brandon.
A
Nancy was a partner of a small business. She could see that the business was beginning to fail and that it was very unlikely it would recover. Not wanting to lose her investment, she asked that the court require the partnership to dissolve since she did not have a legal right to withdraw at that time. Does a court have the authority to order a partnership to dissolve? a. Yes. A court can dissolve a partnership when it is convinced that the partnership is unlikely to succeed. b. Yes. Under the UPA, if a partner can show the court the business suffered a loss the year before the case was filed, the court can dissolve the partnership. c. No. A court can only dissolve a partnership at the request of all the partners. d. No. A court does not have authority to dissolve the partnership.
A
Randy, Joan, and Arnie are partners. Their agreement did not address dissociation nor how long the partnership would last. Randy decided to leave the partnership. When Randy serves notice he intends to withdraw: a. the partnership can either buy him out and continue in business or wind up the business and terminate the partnership. b. the partnership terminates. c. the partnership winds down. d. the partnership estoppes.
A
Ron is the business agent for Kansas Sunshine, a rock band. He is also the agent for another popular Midwestern rock group, City Sand. Ron negotiates a deal with a Kansas City promoter to have City Sand play after a professional football game. The promoter was willing to pay $250,000 for both groups to play after the game; however, Ron talked her into booking just City Sand for $175,000. Given his contract with City Sand, Ron made more money under this arrangement. Has Ron violated his fiduciary duty to Kansas Sunshine? a. Yes. It appears that Ron put his own interests ahead of his principal's interests. b. Yes. Ron cannot, under any circumstances, act as an agent for both groups. c. Both a and b are correct. d. Neither a nor b is correct since it is very common for rock band agents to represent several groups at the same time.
A
Sandy, Ramon, and Bonnie were partners. Sandy dissociated from the partnership. Bonnie and Ramon decided to continue the business. When Sandy dissociated, there was a $50,000 debt owed to Great State Bank. Which statement is correct? a. Sandy remains liable on the $50,000 debt owed to Great State Bank. b. Only Ramon and Bonnie are liable for the $50,000 debt owed to Great State Bank. c. The debt is extinguished as a result of the dissociation. d. Whether Sandy remains liable depends on whether she filed a statement of dissociation.
A
The Federal Trade Commission requires franchisors to: a. give prospective franchisees an offering circular at least 14 business days prior to the signing of a contract or payment of any money. b. disclose the exact amount of the initial investment required. c. disclose any litigation the company has ever been involved in d. disclose how many franchisees have gone out of business in the prior five years.
A
The death of the agent: a. automatically terminates the agency relationship. b. will only terminate the agency relationship if the agent's personal skills are critical to the relationship. c. will only terminate the agency relationship if a written agreement so provides. d. has no legal effect on the agency relationship since the duties of the agent are automatically assumed by the agent's estate until such time as the principal releases the estate from liability.
A
Which of the following is a rightful dissociation? a. A partner in a partnership at will serves notice that he intends to withdraw. b. A partner in a term partnership withdraws before the end of the term. c. A partner in a term partnership becomes bankrupt. d. A partner violates the partnership agreement.
A
Which of the following is not required of an agency relationship? a. Consideration. b. Fiduciary relationship. c. Consent of the parties to act as agent or principal. d. Control of principal over agent's conduct.
A
All the business forms listed below have limited liability except the: a. limited liability company. b. general partnership. c. Subchapter "S" corporation. d. corporation.
B
An agency will be terminated in all but which one of the following situations? a. The principal and agent agree on an agency relationship to sell a boat, and the boat is sold. b. A travel agent files for individual bankruptcy under Chapter 13. c. The agent violates his duty of loyalty. d. An electrician, an agent of a contractor, has her license revoked.
B
Astrid and Razi formed a partnership in which they agree to share profits 60 percent to Astrid and 40 percent to Razi. Losses will be shared: a. equally, unless otherwise agreed. b. 60 percent to Astrid and 40 percent to Razi, unless otherwise agreed. c. according to their capital contributions to the partnership. d. in whatever proportion provides the greatest tax advantage for the partners that year.
B
At what stage are the partnership debts paid and the proceeds distributed to the partners? a. During dissolution. b. During winding up. c. During termination. d. During dissociation.
B
Can a person work as an agent for two different people with conflicting interests? a. Yes, under the equal dignities rule. b. Yes, provided the agent discloses to both principals that she is representing both persons and the principals agree to the dual relationship. c. No, dual agency relationships are per se illegal. d. No, this would be power coupled with an interest.
B
Charles and Becky are partners. If they have a disagreement, the Uniform Partnership Act will govern their respective rights with each other: a. despite any written partnership agreement they may have signed. b. only if they do not have a written partnership agreement that addresses the issue of dispute. c. only if they agree to be bound by the UPA. d. only if their written partnership agreement states that they will be bound by the terms of the UPA.
B
Dusty dissociated from a partnership. To protect himself from debts of the partnership after he leaves, Dusty should: a. secure an indemnity bond. b. file a statement of dissociation with the Secretary of State. c. execute a formal written agreement with the remaining partners. d. demand that the partnership terminate.
B
Gary and Herman are partners in a lawn mower repair business in Ohio. While Gary is on vacation, visiting his sister in Georgia, his sister's neighbor has trouble with her mower and Gary fixes it for her. She insists on paying him. Gary: a. may keep the payment since he did the work while he was on vacation. b. must turn the money over to the partnership because he earned it doing the kind of work that the partnership does. c. may not accept the money because it would create a conflict of interest. d. may not accept the money because it would mean he was taking a business opportunity away from the partnership.
B
Janet was employed as a sales representative for Esday, Inc. An appreciative customer gave her a diamond bracelet for all her hard work on a complicated contract. Can Janet keep the bracelet? a. Yes. The bracelet was given to Janet personally and intended for her. b. Yes, but only if she discloses the gift to Esday and Esday consents to her keeping the bracelet. c. No. An agent is not allowed under any circumstances to personally profit as a result of the agency relationship. d. No. The bracelet is regarded as an unfair trade practice and violates antitrust law.
B
Lance and Darrell have an equal partnership. This year, after expenses, the partnership had a profit of $100,000. Lance and Darrell will each pay taxes on: a. whatever they receive from the partnership. b. $50,000. c. $100,000. d. None of the above. The partnership itself will pay the taxes on the business's profit.
B
Lori and Dan own a small restaurant as partners. Dan works several hours a day cooking, waiting on tables, doing the books, and so forth. Dan believes he is entitled to be paid at least a standard wage for all his work since, at the present time, the part-time kitchen helpers earn more than he does! Lori claims Dan is not entitled to anything other than one-half the net profits. Is Lori right? a. Yes. The UPA states a partner may not collect a "wage" from the partnership business under any circumstances. b. Yes, as there is no agreement between Lori and Dan allowing for either of them to be paid wages for work done at the restaurant. c. No. Dan may collect only minimum wage, as required by federal law. d. No. Dan may collect a fair wage for the work he has performed.
B
Seventy farmers in Morgan County joined together to gain the advantages of purchasing seed and fertilizer in bulk and of obtaining better prices when distributing and selling their crops. These farmers have formed a: a. business trust. b. cooperative. c. franchise. d. joint venture.
B
Wanting to save the money she would have to pay for a commission, Marsha asks her friend Howard to check on the Internet and see if he can find a five-day cruise to the Bahamas for under $400 and if he does, to book it for her. He agrees, but later tells her he doesn't have time to check for her. Howard: a. is liable to Marsha for damages if she misses an opportunity to go on such a cruise because Howard terminated the agreement when he did not have the power to do so. b. is not liable to Marsha because he was a gratuitous agent and had both the power and the right to quit any time he wanted. c. is liable to Marsha for damages because Howard terminated the agreement without the right to do so. d. is liable to Marsha for breach of the duty to cooperate.
B
A partnership is the association of two or more persons to carry on as co-owners a business for profit. The association: a. must be established by filing Articles of Partnership with the Secretary of State. b. must be established by a formal agreement. c. means a voluntary relationship between the persons. d. includes all direct descendants.
C
An agent may not engage in inappropriate behavior that reflects badly on the principal. This rule applies to conduct: a. during working hours. b. during off-duty time. c. during both working hours and off-duty time. d. only by public officials.
C
HBR Accounting hired Denise, a CPA, to prepare tax returns. Which statement is correct? a. Denise is a gratuitous agent and has a duty not to commit gross negligence. b. Denise is an agent and has a duty not to commit ordinary negligence. c. Denise, as a CPA, is an agent with special skills. She is held to a higher duty than ordinary negligence. d. Denise, as a CPA, is an agent with special skills. She is held to a lower standard than ordinary negligence.
C
If Kay, a partner in an auction business, has a personal creditor who is aggressive about collecting the debt: a. Kay can sell her share in the partnership to repay the debt, regardless of what her partners want her to do. b. the creditor can attach the partnership property to pay off the debt. c. the creditor can attach partnership profits by obtaining a charging order. d. Kay cannot meet her obligation to repay her personal creditor through her partnership assets. Her personal obligations will have to be paid through her personal funds or she will have to dissociate from the partnership and force the partnership to buy her share.
C
In a power coupled with an interest: a. the principal has the power but not the right to cancel the relationship. b. the principal has the right but not the power to cancel the relationship. c. the principal has neither the power nor the right to terminate. d. it depends on the nature of the relationship whether or not the principal has the right or power to terminate the relationship.
C
Linda borrowed $2,500 from Tonya. They agreed that Tonya could take a grouping of Linda's antiques as collateral. If Linda could not pay, then Tonya could sell the antiques to recover her money. When Linda could not pay off the loan, Tonya sold the antiques and paid Linda the proceeds after deducting the balance of the loan. Which of the following statements is correct? a. Either Linda or Tonya can terminate the relationship. b. Only Linda can terminate the relationship. c. Only Tonya can terminate the relationship. d. Neither Tonya nor Linda can terminate the relationship.
C
Max, Jenny, and Craig are partners. They have purchased an elegant Victorian home and converted it into an office for their partnership. Craig decides to use the partnership's office to host some evening parties. Craig has a sideline business of arranging expensive gatherings and charging each person a handsome price to attend these "elite" parties. When Max and Jenny find out what Craig is doing, they demand that he pay them for the use of the property. How much money, if any, is Craig required to pay the partnership? a. Nothing. He is free to use partnership property for his own uses. b. Nothing, but he will be removed from the partnership for violating his fiduciary duty. c. He must turn over any profits he earned from this activity. d. He must pay the fair market value for the use of the house.
C
Nathan agrees to act as an agent for Cheyenne. Which of the following is true? a. Nathan may compete with Cheyenne in matters within the scope of the agency business. b. The agency can only be terminated by the mutual agreement of Nathan and Cheyenne. c. Cheyenne may compete with Nathan in matters within the scope of the agency business. d. If Nathan develops a mental disability, the agency will terminate, but if Cheyenne develops the mental disability, the agency is unaffected.
C
Pamela hired Lena to sell her business. Lena: a. can buy the business as long as the price is fair. b. can buy the business as long as she qualifies for financing. c. can buy the business only with Pamela's permission. d. cannot buy the business under any circumstances.
C
Which of the following events occurs first with respect to the ending of a partnership? a. Termination. b. Winding up. c. Dissolution. d. Distribution of proceeds.
C
If the agent is disloyal to the principal: a. the agency agreement automatically terminates and the principal may rescind the transaction. b. the principal has the right to collect any actual damages sustained as a result of the agent's disloyalty. c. the principal has a right to recover any profits earned as a result of his agent's disloyal conduct. d. All the above are correct.
D
Linda borrowed $2,500 from Tonya. They agreed that Tonya could take a grouping of Linda's antiques as collateral. If Linda could not pay, then Tonya could sell the antiques to recover her money. When Linda could not pay off the loan, Tonya sold the antiques and paid Linda the proceeds after deducting the balance of the loan. Which of the following statements is correct? a. This is an irrevocable agency relationship. b. This is a power coupled with an interest. c. Linda has neither the power nor the right to terminate the relationship. d. All the above are correct.
D
Mohammad was an employee in the new product development department of Estay Inc. Mohammad was directly involved in the development of a new product that Estay intended to launch in 6 months. Estay took great care to keep information concerning the new product a secret. Ceries, Inc., a competitor of Estay, persuaded Mohammad to leave Estay to direct Ceries' marketing department. Which statement is correct? a. Mohammad can share with Ceries the confidential information he knows about Estay's new product because he was directly involved in its development. b. Mohammad can share with Ceries the confidential information he knows about Estay's new product because his agency relationship with Estay is terminated. c. Mohammad cannot share with Ceries the confidential information he knows about Estay's new product because of the equal dignities rule. d. Mohammad cannot share with Ceries the confidential information he knows about Estay's new product because he has a duty not to disclose confidential information he acquired during the agency.
D
Nikki was an tax accountant with HBR Accounting. Nikki decided to do some tax consulting in the evenings and on weekends. HBR is unaware of Nikki's consulting work. Which statement is correct? a. Nikki has not breached a fiduciary duty to HBR since her consulting is done after her work for HBR. b. Nikki has not breached a fiduciary duty to HBR since her behavior does not reflect badly on the accounting firm. c. Nikki has not breached a fiduciary duty to HBR since Nikki has a contractual relationship with her clients, not her employer. d. Nikki has breached a fiduciary duty to HBR since she is competing with HBR.
D
Rachel and Cyndi started a retail business called Zebra Toy Company. The business is operated as a partnership. Under partnership law: a. Rachel is personally liable for any business contracts entered into by Cyndi. b. Rachel is personally liable for any business debts, regardless of whether she or Cyndi created the obligation. c. Rachel is personally liable for any negligent act committed by Cyndi in the scope of the business activity. d. All the above.
D
The equal dignities rule relative to agency law applies to an agent: a. hired to contract for a booth at a trade show scheduled to occur in two years. b. selling real estate for the principal. c. authorized to enter into a two-year lease for her principal. d. All the above.
D
Theresa and Bobbi bought a racehorse together. They agreed to share all expenses and split net profits equally. There was no agreement as to the duration of the partnership. After about a year, Bobbi decided she was tired of the racehorse business and left the partnership. Bobbi did not violate the partnership agreement. Theresa claims Bobbi's leaving was wrongful. Is Theresa correct? a. Yes, Bobbi was legally required to secure Theresa's permission before leaving the partnership. b. Yes, Bobbi had a legal duty to stay in the partnership until Theresa was willing to agree to end the relationship. c. Yes, Bobbi had a legal duty to stay in the partnership until a new partner could be found. d. No, in a partnership at will, a partner has the right to leave the partnership at any time.
D
Tom, the production manager at Esday, was told by his supervisor to hire Elton, a 15- year-old, to operate an industrial machine. Hiring the 15-year-old violates the child labor laws. Tom: a. should hire Elton. Tom has a duty to obey Esday's instructions. b. should hire Elton. Tom has a duty of care to ensure that the government does not discover that Elton is 15 years old. c. should not hire Elton. Tom has a duty of care and he would not be caring for Elton. d. should not hire Elton. Tom has a duty to obey Esday's instructions only if they are legal and ethical.
D
Which of the following persons is an agent? a. Diane, a shoe salesperson for a retail store. b. Tim, a real estate broker for a large real estate company. c. Craig, a telephone marketing employee. d. All the above.
D
Which of the following would be evidence that two people intend to be partners? a. An agreement to share profits of a business. b. Referring to each other as "partners." c. Agreeing to share in the business's losses. d. All of the above are evidence of a partnership.
D
A partner always has the right, though not the power, to leave a partnership.
F
A partnership can only be held liable for the partners' authorized acts.
F
A partnership is a separate, taxable entity.
F
A principal must indemnify an agent for any expenses incurred in carrying out agency responsibilities, but the principal will not be responsible for indemnifying an agent for any unauthorized purchases.
F
An agent must obey any and all instructions of the principal
F
As a good neighbor, Lou gratuitously agreed to try to sell Haley's aquarium while she was on vacation. Since there is no consideration for this agreement, there can be no agency relationship between Lou and Haley.
F
Brock and Heidi agree to jointly run the hospital's fundraiser. Even if they don't have a formal, written agreement, they have formed a partnership.
F
Corporations have a distinct advantage over other forms of business organization in the area of taxation.
F
Doyle contributed $10,000 to become a partner in the existing partnership of R & Z Heating. If Albert wins a judgment for $25,000 against R & Z on a claim that was incurred before Doyle became a partner, Doyle shares joint and several liability with his new partners for the whole obligation.
F
Dr. Wong, a dentist, and his wife, an attorney, can protect their personal assets with limited liability from their business dealings by creating and operating a professional corporation together.
F
Elion was a partner in a partnership. Elion's death is considered a wrongful dissociation.
F
Esday, Inc. hired Mark to be a financial analyst. Because of the equal dignities rule, the employment contract between Esday and Mark must be in writing.
F
Franchise fees can be costly, but they are usually payable over a number of years, after profits are generated from the business.
F
John is the trustee of a large testamentary trust. Lori is the sole beneficiary of the trust. Because John is the trustee, he is Lori's agent
F
Li was involved in the winding up of her partnership. Li is not entitled to compensation for her work since she is a partner.
F
Limited liability is a major advantage of a partnership as compared to a corporation.
F
Rob agrees to act as an agent for Diane in selling her car. Diane has a duty of loyalty to Rob.
F
The Federal Trade Commission will not allow the sale of franchises that are unfair to the franchisee
F
The bankruptcy of an agent automatically terminates an agency relationship.
F
The dissolution of a partnership means the same as its termination.
F
The most common form of business ownership is the corporation.
F
The rules set out in the UPA defining the liability of partners to outsiders can be modified by the partnership agreement
F
To be a close corporation, the business must be small, with under 20 owners and under $500,000 in gross annual income.
F
To form an LLC, a charter and an operating agreement must be filed with the Secretary of State in the jurisdiction where the business will operate.
F
You cannot be held liable for the actions of your agents if the agents are violating your instructions.
F
It does not create an agency relationship between Minott Mills and Douthett Co. for Minott Mills to contract to sell 500 yards of fabric to Douthett Co.
T
Jeremiah was a partner in a partnership, but quits. Dissociation has occurred.
T
A limited liability company, unlike a Subchapter S corporation, can have members that are corporations, partnerships, or nonresident aliens.
T
A partnership is liable for both the negligent and intentional acts of a partner if the acts were committed within the ordinary course of the partnership's business.
T
Alicia and Ted have a written agreement wherein they will share the losses of their joint business. This agreement is strong evidence they are partners.
T
Cooperatives may be either incorporated or unincorporated businesses.
T
Dwayne agrees to serve as Walker's agent in booking spots for Walker's portable basketball game. Dwayne asks Walker for pictures and size specifications of the game so he can provide potential customers information they need. If Walker does not provide the pictures and size information, he is breaching a duty to Dwayne.
T
Filings are required to form and operate a limited liability partnership.
T
Generally, a joint venture is a partnership created for one limited purpose
T
Generally, either party to an agency relationship has the power to terminate it at any time.
T
Larry decided to relocate to Germany. Larry hired Happy Homes, Inc. to find a buyer and contract for the sale of his house in the U.S. The agency relationship between Larry and Happy Homes must be evidenced with a written agreement.
T
Li, a partner, was involved in the winding up of the partnership. A lucrative business opportunity for the partnership arises. Li does not have the right to take on this new business.
T
The case of Apcar v. Gaus illustrates that it is essential to comply with all the technicalities of a limited liability partnership statute.
T
The common law of agency applies to relations between partners and it also applies to relations between partners and third parties.
T
Timothy and Holly are partners in a printing shop. If Denver obtains a judgment against Timothy for injuring Denver while Timothy was on partnership business, Denver must try to collect from the partnership before going after Timothy's personal assets.T
T
Victoria is the director of marketing for Big Corporation. Victoria needed to negotiate an out-of-town contract on behalf of Big. Big has a legal duty to reimburse Victoria for the hotel expenses she incurs negotiating the contract.
T
