Question 1

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

Accepted Answer

In a term partnership, which is a partnership set for a specific duration, one partner cannot unilaterally dissolve the partnership by simply giving notice to the other partners. Dissolution under these circumstances typically requires mutual agreement or circumstances outlined in the partnership agreement.

Question 2

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

Accepted Answer

True

Question 3

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

This is known as the right of contribution or right of reimbursement, which allows a partner who has paid more than their share of partnership losses to recover their excess contributions from the partners who have not paid their full share.

Question 4

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

Accepted Answer

This statement is true as partnership involves a principal-agent relationship where each partner is an agent for the partnership and has the authority to act on behalf of the partnership. Therefore, the law of agency plays a significant role in partnership law.

Question 5

Under the RUPA,dissolution occurs automatically upon the happening of an event specified in the partnership agreement as resulting in dissolution.The partners may not agree to continue the business.

Accepted Answer

Under the RUPA (Revised Uniform Partnership Act), even if an event specified in the partnership agreement as causing dissolution occurs, the partners can unanimously agree to continue the business, thereby preventing automatic dissolution.

Question 6

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

Accepted Answer

This is the concept of "notice to the partnership" in partnership law, where notice given to one partner is considered notice to the entire partnership.

Question 7

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

The partnership is not automatically dissolved by operation of law due to a partner's conduct making it not reasonably practicable to carry on the business. Instead, the other partners may need to seek a judicial dissolution or agree upon dissolution according to the partnership agreement or applicable partnership laws.

Question 8

The actual express authority of partners must be specifically set forth in the partnership agreement.

Accepted Answer

While the partnership agreement may outline some of the partners' authority, it is also possible for partners to have implied or apparent authority based on the actions they take and the role they play in the partnership. In other words, not all authority is explicitly outlined in the agreement.

Question 9

"Dissolution" of a partnership and "termination" of a partnership are synonymous.

Accepted Answer

While dissolution and termination are related concepts, they have distinct legal meanings in the context of a partnership. Dissolution refers to the beginning of the process of winding up the partnership affairs, while termination refers to the actual end of the partnership.

Question 10

The RUPA requires a central filing of a statement of partnership authority specifying the names of partners authorized to execute instruments transferring real property held in the name of the partnership.

Accepted Answer

The answer of The RUPA requires a central filing of...

Question 11

Powell falsely tells Dunagan that she is a member of the partnership of Morgan and Stiles.Dunagan mentions this information to Trammell,who in reliance sells equipment on credit to Morgan and Stiles.Trammell can hold Powell liable for the misrepresentation.

Accepted Answer

The answer of Powell falsely tells Dunagan that she is...

Question 12

A partner has implied authority to hire and fire employees whose services are necessary to carry on the partnership business.

Accepted Answer

Implied authority is the authority that is not explicitly given to a partner, but it is necessary to carry on the partnership business. Hiring and firing employees is necessary for the operation of the business, so a partner has implied authority to do so.

Question 13

The UPA marshaling of assets doctrine is abolished by the RUPA.

Accepted Answer

The Uniform Partnership Act (UPA) included the marshaling of assets doctrine, which required a partner's personal assets to be used to satisfy partnership debts before partnership assets were used. However, this doctrine was abolished by the Revised Uniform Partnership Act (RUPA).

Question 14

A person admitted into an existing partnership is personally liable for all of the obligations of the partnership arising before his admission.

Accepted Answer

A person admitted into an existing partnership is not automatically personally liable for obligations of the partnership that arose before their admission. They may become liable to the extent agreed upon in the partnership agreement or by subsequent agreement with the creditors.

Question 15

Respondeat superior has no application to situations where a partner commits a tort,because only the partner and not the partnership is liable.

Accepted Answer

Respondeat superior can apply to partnerships if the tort was committed within the scope of partnership business or if the partner was acting as an agent of the partnership. However, if the partner acted outside of the partnership's scope of business or was not acting as an agent of the partnership, then only the individual partner would be liable.

Question 16

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

Accepted Answer

Upon dissolution of a partnership, a partner retains the authority to perform acts appropriate for winding up partnership affairs or completing transactions unfinished at dissolution, but cannot undertake new business activities on behalf of the partnership.

Question 17

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

The answer of Norma leaves the Tri-County Accounting Partnership.She may...

Question 18

Upon dissolution,a partner still has authority to complete existing contracts.

Accepted Answer

According to the Uniform Partnership Act, a partner still has authority to complete existing contracts even after dissolution. However, the partner's authority is limited to actions necessary to complete the contracts and wind up the partnership affairs.

Question 19

Randy,Mona,and Richard are partners.Under the UPA,a creditor of their partnership must name all three partners as defendants in a suit on a contract obligation of the partnership.

Accepted Answer

Under the Uniform Partnership Act (UPA), all partners are jointly and severally liable for the debts and obligations of the partnership, which means that a creditor must name all partners as defendants in a lawsuit to collect a debt owed by the partnership.

Question 20

Under the RUPA,a judgment creditor of a partnership may first attempt to enforce a judgment against either the separate assets of a partner or the partnership itself.

Accepted Answer

The answer of Under the RUPA,a judgment creditor of a...

Quiz 31: Operation and Dissolution of General Partnerships