Question 1

Speedy Delivery Service,an unregistered partnership in Toronto,has been sued by the injured party in a motor vehicle accident that occurred with one of Speedy's delivery trucks.Speedy believes it has a good defence in contributory negligence.
-Speedy may immediately file a Statement of Defence in these proceedings.

Accepted Answer

The answer of Speedy Delivery Service,an unregistered partnership in Toronto,has...

Question 2

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
-It will be on only rare occasions that individuals who are principals will find themselves in a position of having to ratify contracts made by their agents.

Accepted Answer

The answer of Certain high-technology components may not be exported...

Question 3

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement.
-If the vote were unanimous,the outcome in Question 55 would be different.

Accepted Answer

The answer of The partners of Green Grow Landscaping no...

Question 4

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
-Where "Jane Doe per John Doe" appears executed on a signature line,Jane Doe is the agent.

Accepted Answer

The answer of Certain high-technology components may not be exported...

Question 5

John and Peter purchased a joint interest in a five-acre campground with a variety store and mini-golf course and retained the existing manager to handle day-to-day operations.From time to time they made improvements to the site and each year they divided the profits (or losses)from the campground equally between the two of them.
-If Peter takes over operational management and John assumes the administrative tasks associated with the campground,a partnership exists in respect of the business.

Accepted Answer

A partnership is formed when two or more individuals come together to carry on a business for profit, with the intention of sharing the profits and losses between them. In this case, John and Peter have joint ownership and share the profits and losses equally. By taking on different roles within the business, they are still operating as partners.

Question 6

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement.
-Any partner may terminate a partnership agreement that is for a specified period of time upon giving notice of dissolution to the remaining partners.

Accepted Answer

Since Green Grow Landscaping does not have a partnership agreement, the rules for dissolution and termination of a partnership can be determined by state law. In most states, one partner cannot unilaterally dissolve a partnership unless there is a specific agreement in place that allows for it. Therefore, the partners cannot terminate the partnership without a partnership agreement or without following the state law requirements for dissolution.

Question 7

The partners of a small accounting firm delegate responsibilities among themselves for various duties.Davies is responsible for professional development.After reserving a banquet room and food for a seminar at which a leading tax accountant will speak,Davies learns on the eve of the seminar that the guest cannot attend.
-An ex-partner can never be liable for partnership debts incurred after he leaves the partnership.

Accepted Answer

The statement given is false. Although an ex-partner may not be responsible for debts incurred after leaving the partnership, they may still be liable for debts incurred during their time as a partner, depending on the terms of their partnership agreement and applicable laws.

Question 8

The partners of a small accounting firm delegate responsibilities among themselves for various duties.Davies is responsible for professional development.After reserving a banquet room and food for a seminar at which a leading tax accountant will speak,Davies learns on the eve of the seminar that the guest cannot attend.
-A partner who acts beyond his actual authority in dealings with third parties will be liable to the other partners under the notion of "breach of warranty of authority."

Accepted Answer

The statement about "breach of warranty of authority" is not relevant to the given scenario about Davies and the seminar. Therefore, it is false.

Question 9

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
-The law of agency has its roots in all of tort,contract,quasi-contract,and the law of equity.

Accepted Answer

The law of agency can be traced back to all of these legal areas, including tort, contract, quasi-contract, and the law of equity.

Question 10

John and Peter purchased a joint interest in a five-acre campground with a variety store and mini-golf course and retained the existing manager to handle day-to-day operations.From time to time they made improvements to the site and each year they divided the profits (or losses)from the campground equally between the two of them.
-John and Peter are partners.

Accepted Answer

John and Peter jointly purchased the campground and share profits and losses, which are the basic characteristics of a partnership.

Question 11

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
-Ramona is departing on vacation,while the home she has put up for sale has sold unexpectedly quickly.She asks her friend Veronica to execute documents on her behalf while she is away,related to the sale of her house.Veronica will be appointed as principal under a power of attorney.

Accepted Answer

A power of attorney appoints someone as an agent, not as a principal. Veronica would be appointed as an agent to act on Ramona's behalf.

Question 12

Speedy Delivery Service,an unregistered partnership in Toronto,has been sued by the injured party in a motor vehicle accident that occurred with one of Speedy's delivery trucks.Speedy believes it has a good defence in contributory negligence.
-The result in Question 59 would be different if Speedy were located in Vancouver.

Accepted Answer

In Ontario, unregistered partnerships are not liable for the torts of their partners, but in British Columbia, they are.

Question 13

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement.
-Four out of six of the partners may vote to successfully dismiss James from the partnership.

Accepted Answer

In the absence of a partnership agreement, the default rules under the applicable partnership law typically require unanimous consent to expel a partner, not a majority vote.

Question 14

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement.
-James may not transfer his share in the partnership to another person.

Accepted Answer

The answer of The partners of Green Grow Landscaping no...

Question 15

The partners of a small accounting firm delegate responsibilities among themselves for various duties.Davies is responsible for professional development.After reserving a banquet room and food for a seminar at which a leading tax accountant will speak,Davies learns on the eve of the seminar that the guest cannot attend.
-The firm is liable for the banquet cancellation charge.

Accepted Answer

Since Davies was responsible for professional development, it can be assumed that he was given the authority to reserve the banquet room and food for the seminar. As a result, he would also be responsible for any cancellation fees incurred due to the guest speaker's absence. Therefore, the firm would be liable for the banquet cancellation charge.

Question 16

The partners of a small accounting firm delegate responsibilities among themselves for various duties.Davies is responsible for professional development.After reserving a banquet room and food for a seminar at which a leading tax accountant will speak,Davies learns on the eve of the seminar that the guest cannot attend.
-The provisions of the Partnership Act supersede the terms of a partnership agreement with respect to the rights and obligations of the partners to one another.

Accepted Answer

The terms of a partnership agreement can override the default provisions of the Partnership Act, except where the Act specifies mandatory terms that cannot be altered by agreement.

Question 17

The partners of a small accounting firm delegate responsibilities among themselves for various duties.Davies is responsible for professional development.After reserving a banquet room and food for a seminar at which a leading tax accountant will speak,Davies learns on the eve of the seminar that the guest cannot attend.
-If Davies arranges a holiday party at a local restaurant for partners and their spouses,the restaurant can demand payment from Davies if the firm fails to pay the bill.

Accepted Answer

In this scenario, Davies acted on behalf of the firm when arranging the holiday party. If the firm fails to pay, the restaurant can hold Davies personally liable because he was the one who made the arrangement, assuming he did not explicitly state he was acting solely as an agent for the firm.

Question 18

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
-The most common form of agency by necessity is the relationship between a real estate agent and his or her principal.

Accepted Answer

Agency by necessity usually arises in emergency situations where an agent must act beyond their authority to prevent significant loss to the principal, not in regular, planned relationships like that of a real estate agent and their principal.

Question 19

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
-Where one is an agent by conduct,it may equally be said that one is an agent by estoppel.

Accepted Answer

This statement is true. If someone acts as an agent, even if they have not been explicitly designated as one, they can be held responsible for actions taken on behalf of the principal. This is known as agency by estoppel.

Question 20

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
-The sharing of business profits is insufficient to indicate the existence of a partnership agreement.

Accepted Answer

Sharing of business profits alone is not sufficient to indicate the existence of a partnership agreement. Other factors such as joint management and control of the business, sharing of losses, and contribution of capital are also considered.

Quiz 6: Sole Proprietorship, Agency, and Partnership

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement. -If the vote were unanimous,the outcome in Question 55 would be different.

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement. -Any partner may terminate a partnership agreement that is for a specified period of time upon giving notice of dissolution to the remaining partners.

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement. -Four out of six of the partners may vote to successfully dismiss James from the partnership.

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement. -James may not transfer his share in the partnership to another person.