BUL 4310 FINAL EXAM QUESTIONS
WITH CORRECT ANSWERS
Can you assign your interest in a limited partnership? - Answer-Yes, can not assign partnership
property....you can assign your interest but this means just your income...NOT any right to control or
information!
If a sole proprietor dies, what happens to his business? - Answer-For the most part the company suffers
from potential lack of continuity in which when the sole owner of the company dies so does the
company, unless the owner has properly prepared in advance to prevent this outcome from happening.
In a business transaction, which parties are potentially strictly liable for defective parts? - Answer-
Manufacturers, processors, assemblers, packers, bottlers, wholesalers, distributors, retailers and lessors.
What must you prove to win a product liability claim based on negligence? - Answer-If a manufacturer
fails to exercise "due care" to make a product safe, a person who is injured by the product may sue the
manufacturer for negligence
Can the director of a corporation access the corporate books and records? What right? - Answer-Yes
every employee has access to records
What rights do limited partners in a limited partnership have to access the books and information
regarding partnership business? - Answer-Must be kept accessible to all partners. Each partner has the
right to receive and produce full information concerning the conduct of all aspects of partnership
business.
, What must a franchiser disclose to a franchisee when evaluating whether to purchase the business? -
Answer-Must disclose certain material facts that a prospective franchisee needs in order to make an
informed decision concerning the purchase of the franchise.
In what type of situations is strict liability most commonly applied? - Answer-May be imposed on
defendants in cases involving abnormally dangerous activities, dangerous animals, opr defective
products.
How many members are required in a limited liability company? - Answer-Can be one but but some
states require two members to start a LLC
How are LLCs taxed? - Answer-If there are more than two members can choose to be taxed as a
partnership, or a corporation.
Misuse of domain name - Answer-Competition for SLDs among firms with similar names and products. If
used an identical/similar name, parties have attempted to profit from competitors goodwill (no tangible
value of the business). Ex: use same name to sell porn, offer to sell others domain name, infringe on
others trademarks.
How are partnerships taxed? - Answer-A pass through entity in which have no tax liability.The
partnership itself pays no taxes and is responsible only for filling and information return with the
internal revenue service.
What are the elements of negligence? - Answer-Duty, Breach, Causation and Damages.
How are sole proprietorship taxed? - Answer-Pays only personal income taxes.
What happens to the limited partnership of a general partner passes away? - Answer-The agreement is
terminated.
WITH CORRECT ANSWERS
Can you assign your interest in a limited partnership? - Answer-Yes, can not assign partnership
property....you can assign your interest but this means just your income...NOT any right to control or
information!
If a sole proprietor dies, what happens to his business? - Answer-For the most part the company suffers
from potential lack of continuity in which when the sole owner of the company dies so does the
company, unless the owner has properly prepared in advance to prevent this outcome from happening.
In a business transaction, which parties are potentially strictly liable for defective parts? - Answer-
Manufacturers, processors, assemblers, packers, bottlers, wholesalers, distributors, retailers and lessors.
What must you prove to win a product liability claim based on negligence? - Answer-If a manufacturer
fails to exercise "due care" to make a product safe, a person who is injured by the product may sue the
manufacturer for negligence
Can the director of a corporation access the corporate books and records? What right? - Answer-Yes
every employee has access to records
What rights do limited partners in a limited partnership have to access the books and information
regarding partnership business? - Answer-Must be kept accessible to all partners. Each partner has the
right to receive and produce full information concerning the conduct of all aspects of partnership
business.
, What must a franchiser disclose to a franchisee when evaluating whether to purchase the business? -
Answer-Must disclose certain material facts that a prospective franchisee needs in order to make an
informed decision concerning the purchase of the franchise.
In what type of situations is strict liability most commonly applied? - Answer-May be imposed on
defendants in cases involving abnormally dangerous activities, dangerous animals, opr defective
products.
How many members are required in a limited liability company? - Answer-Can be one but but some
states require two members to start a LLC
How are LLCs taxed? - Answer-If there are more than two members can choose to be taxed as a
partnership, or a corporation.
Misuse of domain name - Answer-Competition for SLDs among firms with similar names and products. If
used an identical/similar name, parties have attempted to profit from competitors goodwill (no tangible
value of the business). Ex: use same name to sell porn, offer to sell others domain name, infringe on
others trademarks.
How are partnerships taxed? - Answer-A pass through entity in which have no tax liability.The
partnership itself pays no taxes and is responsible only for filling and information return with the
internal revenue service.
What are the elements of negligence? - Answer-Duty, Breach, Causation and Damages.
How are sole proprietorship taxed? - Answer-Pays only personal income taxes.
What happens to the limited partnership of a general partner passes away? - Answer-The agreement is
terminated.
