BUL 5810 STANDARD EXAMS ANSWERS AND
QUESTIONS SET A+
✔✔The RUPA provides that partners are ____ liable on all contract obligations of the
partnership.
(A) jointly and severally
(B) strictly
(C) not
(D) partially - ✔✔(A) jointly and severally
✔✔Nolan 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 $6,000 in
damages. What
liability do the other partners have for Nolan's actions?
(A) Joint and several liability
(B) Individual liability but not joint liability
(C) Liability based on their capital contributions
(D) No liability - ✔✔(A) Joint and several liability
✔✔A partner:
(A) cannot be held criminally liable for the crimes of his partners.
(B) has joint and several liability with his partners for contracts entered and for torts and
crimes
committed by other partners.
(C) may be criminally liable for the crimes of his partners if he authorized the acts.
(D) who commits a tort is liable to the third party only through the partnership entity. -
✔✔(C) may be criminally liable for the crimes of his partners if he authorized the acts.
✔✔Which of the following is true of dissociation?
(A) A partner has the power to dissociate at any time by expressing the intent to
withdraw from the
partnership.
,(B) Which dissociations are wrongful are set forth by statute and cannot be modified by
the
partnership agreement.
(C) The partnership agreement cannot modify the effects of wrongful dissociation.
(D) All of the common law causes of dissociation are also causes under the RUPA. -
✔✔(A) A partner has the power to dissociate at any time by expressing the intent to
withdraw from the
partnership.
✔✔Under the RUPA, a partner's dissociation:
(A) terminates the partner's right to participate in the management and conduct of the
partnership
business.
(B) eliminates that partner's right to participate in winding up the partnership.
(C) does not terminate the duty not to compete with the partnership until the process of
winding up
the partnership has been completed.
(D) terminates that partner's duty to account to the firm for any fees received on behalf
of the
partnership. - ✔✔(A) terminates the partner's right to participate in the management and
conduct of the partnership
business.
✔✔Enzo and Watson Partnership agrees to hire an "errand runner" 20 hours per week
for the
summer. Alan Watson, a partner, interviews a college student and decides to offer her
the job. But
she says she needs a 40-hour-a-week job, so Alan agrees to make it 40 hours. What
result?
(A) Enzo and Watson Partnership is not bound to hire her.
(B) Alan is personally bound to pay her for 20 hours per week.
(C) Alan is personally bound to pay her for 40 hours per week.
(D) Enzo and Watson Partnership is bound to pay her for 40 hours per week. - ✔✔(D)
Enzo and Watson Partnership is bound to pay her for 40 hours per week.
✔✔The Star General Partnership had assets worth $34,000 after liquidation. Frank,
Gene, and
Hank, equal partners, each contributed $3,000 into the capital pool at the inception of
the business.
Gene later loaned the business $5,000. They owe $23,000 to creditors. What will Gene
get in
distribution, assuming there is no agreement on the distribution of profits?
(A) $5,000
(B) $11,000
(C) $8,000
, (D) $7,000 - ✔✔(D) $7,000
✔✔A(n) ____ imposes partnership duties and liabilities upon a nonpartner who has
either
represented himself or consented to be represented as a partner.
(A) fiduciary proceeding
(B) delectus personae
(C) partnership by estoppel
(D) accounting - ✔✔(C) partnership by estoppel
✔✔Under the UPA, which of the following requires the unanimous consent of the
partners?
(A) Confession of judgment
(B) Disposing of the goodwill of the business
(C) Submission of a partnership claim to arbitration
(D) All of these require the unanimous consent of the partners. - ✔✔(D) All of these
require the unanimous consent of the partners.
✔✔Which of the following is true regarding an insolvent partnership under the UPA?
(A) Any partner who pays an amount in excess of his proper share of the losses has a
right of
contribution against the partners who have not paid their share.
(B) The partners must contribute their respective share to the losses in order to pay
creditors.
(C) If one of the partners is out of the jurisdiction and refuses to contribute, the other
parties must
contribute the additional amount necessary to pay the firm's liabilities in the relative
proportions in
which they share the profits.
(D) All of these are true. - ✔✔(D) All of these are true.
✔✔Chuck, Bob, and Bert form CB&B Partnership to run a specialty grocery store. Bert
is the day-t-
-day manager of the store, Bob buys the groceries, and Chuck does all the
administrative work. Bob
decides he would like a new car to drive to visit prospective wholesalers. He makes a
contract with
Big Ben Motors in the name of CB&B without consulting Chuck and Bert. The
partnership is:
(A) bound by Bob's actual implied authority to buy a car.
(B) not bound because buying a car is outside the scope of the partnership business.
(C) bound by Bob's ostensible authority to buy a car.
(D) bound by Bob's apparent authority to buy a car. - ✔✔(B) not bound because buying
a car is outside the scope of the partnership business.
QUESTIONS SET A+
✔✔The RUPA provides that partners are ____ liable on all contract obligations of the
partnership.
(A) jointly and severally
(B) strictly
(C) not
(D) partially - ✔✔(A) jointly and severally
✔✔Nolan 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 $6,000 in
damages. What
liability do the other partners have for Nolan's actions?
(A) Joint and several liability
(B) Individual liability but not joint liability
(C) Liability based on their capital contributions
(D) No liability - ✔✔(A) Joint and several liability
✔✔A partner:
(A) cannot be held criminally liable for the crimes of his partners.
(B) has joint and several liability with his partners for contracts entered and for torts and
crimes
committed by other partners.
(C) may be criminally liable for the crimes of his partners if he authorized the acts.
(D) who commits a tort is liable to the third party only through the partnership entity. -
✔✔(C) may be criminally liable for the crimes of his partners if he authorized the acts.
✔✔Which of the following is true of dissociation?
(A) A partner has the power to dissociate at any time by expressing the intent to
withdraw from the
partnership.
,(B) Which dissociations are wrongful are set forth by statute and cannot be modified by
the
partnership agreement.
(C) The partnership agreement cannot modify the effects of wrongful dissociation.
(D) All of the common law causes of dissociation are also causes under the RUPA. -
✔✔(A) A partner has the power to dissociate at any time by expressing the intent to
withdraw from the
partnership.
✔✔Under the RUPA, a partner's dissociation:
(A) terminates the partner's right to participate in the management and conduct of the
partnership
business.
(B) eliminates that partner's right to participate in winding up the partnership.
(C) does not terminate the duty not to compete with the partnership until the process of
winding up
the partnership has been completed.
(D) terminates that partner's duty to account to the firm for any fees received on behalf
of the
partnership. - ✔✔(A) terminates the partner's right to participate in the management and
conduct of the partnership
business.
✔✔Enzo and Watson Partnership agrees to hire an "errand runner" 20 hours per week
for the
summer. Alan Watson, a partner, interviews a college student and decides to offer her
the job. But
she says she needs a 40-hour-a-week job, so Alan agrees to make it 40 hours. What
result?
(A) Enzo and Watson Partnership is not bound to hire her.
(B) Alan is personally bound to pay her for 20 hours per week.
(C) Alan is personally bound to pay her for 40 hours per week.
(D) Enzo and Watson Partnership is bound to pay her for 40 hours per week. - ✔✔(D)
Enzo and Watson Partnership is bound to pay her for 40 hours per week.
✔✔The Star General Partnership had assets worth $34,000 after liquidation. Frank,
Gene, and
Hank, equal partners, each contributed $3,000 into the capital pool at the inception of
the business.
Gene later loaned the business $5,000. They owe $23,000 to creditors. What will Gene
get in
distribution, assuming there is no agreement on the distribution of profits?
(A) $5,000
(B) $11,000
(C) $8,000
, (D) $7,000 - ✔✔(D) $7,000
✔✔A(n) ____ imposes partnership duties and liabilities upon a nonpartner who has
either
represented himself or consented to be represented as a partner.
(A) fiduciary proceeding
(B) delectus personae
(C) partnership by estoppel
(D) accounting - ✔✔(C) partnership by estoppel
✔✔Under the UPA, which of the following requires the unanimous consent of the
partners?
(A) Confession of judgment
(B) Disposing of the goodwill of the business
(C) Submission of a partnership claim to arbitration
(D) All of these require the unanimous consent of the partners. - ✔✔(D) All of these
require the unanimous consent of the partners.
✔✔Which of the following is true regarding an insolvent partnership under the UPA?
(A) Any partner who pays an amount in excess of his proper share of the losses has a
right of
contribution against the partners who have not paid their share.
(B) The partners must contribute their respective share to the losses in order to pay
creditors.
(C) If one of the partners is out of the jurisdiction and refuses to contribute, the other
parties must
contribute the additional amount necessary to pay the firm's liabilities in the relative
proportions in
which they share the profits.
(D) All of these are true. - ✔✔(D) All of these are true.
✔✔Chuck, Bob, and Bert form CB&B Partnership to run a specialty grocery store. Bert
is the day-t-
-day manager of the store, Bob buys the groceries, and Chuck does all the
administrative work. Bob
decides he would like a new car to drive to visit prospective wholesalers. He makes a
contract with
Big Ben Motors in the name of CB&B without consulting Chuck and Bert. The
partnership is:
(A) bound by Bob's actual implied authority to buy a car.
(B) not bound because buying a car is outside the scope of the partnership business.
(C) bound by Bob's ostensible authority to buy a car.
(D) bound by Bob's apparent authority to buy a car. - ✔✔(B) not bound because buying
a car is outside the scope of the partnership business.
