Question 1

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

A) True 
 B)False

Question 2

Smarth, King, and Finkel have been partners for years, but a court of equity is now segregating and considering separately the assets and liabilities of the partnership and the respective assets and liabilities of the individual partners. This process is called:

Accepted Answer

A)   marshaling of assets.
B)   liquidation.
C)   dissolution of the partnership.
D)   winding up.E) A) and C)
F) A) and B)

Question 3

A partner has implied authority to:

Accepted Answer

A)   hire and fire employees necessary for operation of the business.
B)   purchase property necessary for the business.
C)   bring legal actions to enforce claims of the partnership.
D)   All of these.E) B) and C)
F) A) and C)

Question 4

Which of the following is NOT considered to be dissolution by operation of law under the UPA?

Accepted Answer

A)   Bankruptcy of a partner.
B)   Expulsion of a partner according to the partnership agreement.
C)   Subsequent illegality of the partnership.
D)   Death of a partner.E) B) and C)
F) A) and C)

Question 5

The withdrawal of a partner in a partnership at will may be either a rightful or wrongful dissociation.

Accepted Answer

A) True 
 B)False

Question 6

__________ is available to a third person to whom a representation is made and who justifiably relies on the representation.

Accepted Answer

A)   Delectus personae
B)   Respondeat superior
C)   Culpable negligence
D)   Partnership by estoppelE) All of the above
F) A) and B)

Question 7

Takira leaves the Coastal Area 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 Coastal Area .

Accepted Answer

A) True 
 B)False

Question 8

Define dissolution under the UPA and discuss its three causes.

Accepted Answer

The UPA defines dissolution as the chang...

Question 9

Partners are required to participate in winding up the partnership.

Accepted Answer

A) True 
 B)False

Question 10

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

A) True 
 B)False

Question 11

Under the RUPA, the partners have what type of liability for all contract obligations of the partnership?

Accepted Answer

A)   Joint.
B)   Joint and several.
C)   Several.
D)   None.E) B) and D)
F) None of the above

Question 12

David, a partner in the Speedy Delivery partnership, negligently drove his delivery truck onto the curb during a rush-hour package delivery. Marlene was injured. Against whom can Marlene collect?

Accepted Answer

A)   Only David.
B)   Only the other partners.
C)   Speedy Delivery Partnership.
D)   Both  Speedy Delivery Partnership and any partner .E) A) and B)
F) All of the above

Question 13

Under the UPA, after dissolution:

Accepted Answer

A)   the partnership must be liquidated.
B)   the remaining partners have the right to continue the partnership if the majority of them agree.
C)   the remaining partners have the right to continue the partnership if the partnership was dissolved in contravention of the partnership agreement.
D)   the partnership must be liquidated only if the dissolution was caused by the expulsion of a partner in accordance with the partnership agreement.E) B) and D)
F) B) and C)

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Roberts, Smith, and Thomas have been partners for twenty years. The partners, however, are now collecting debts, converting assets to cash, paying creditors, and distributing remaining assets to each partner. Roberts, Smith, and Thomas are engaged in:

Accepted Answer

A)   dissolution.
B)   marshaling assets.
C)   reformation.
D)   winding up.E) B) and D)
F) A) and B)

Question 16

Actual authority terminates upon:

Accepted Answer

A)   dissolution of the partnership.
B)   illness of one of the partners.
C)   physical destruction of partnership papers.
D)   All of these events terminate actual authority.E) A) and D)
F) A) and C)

Question 17

In a three person partnership, one partner commits fraud which creates a liability to the partnership of $9,000. If the three partners share profits and losses equally, each partner's liability to the partnership for the fraudulent act is $3,000.

Accepted Answer

A) True 
 B)False

Question 18

a. What is the liability of the partners for contracts regarding partnership business? 
b. What is the liability of the partnership for torts committed by a partner while acting in the ordinary course of partnership business? How does this compare to the liability of a principal under respondeat superior ? Explain.

Accepted Answer

a. Under the UPA, partners are jointly l...

Question 19

Under the UPA, a creditor of a partnership must name all the partners as defendants in a suit on a contract obligation of the partnership.

Accepted Answer

A) True 
 B)False

Question 20

A retiring partner has no way of being discharged from her existing liabilities other than by paying them off.

Accepted Answer

A) True 
 B)False

Exam 31: Operation and Dissolution of General Partnerships

Define dissolution under the UPA and discuss its three causes.

Correct Answer
verified
The UPA defines dissolution as the chang...
View Answer

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.

Correct Answer
verified

Correct Answer
verified
a. Under the UPA, partners are jointly l...
View Answer

__________ is available to a third person to whom a representation is made and who justifiably relies on the representation.

Correct Answer
verified

David, a partner in the Speedy Delivery partnership, negligently drove his delivery truck onto the curb during a rush-hour package delivery. Marlene was injured. Against whom can Marlene collect?

Correct Answer
verified

Under the UPA, after dissolution:

Correct Answer
verified

Which of the following is NOT considered to be dissolution by operation of law under the UPA?

Correct Answer
verified

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

Correct Answer
verified

Smarth, King, and Finkel have been partners for years, but a court of equity is now segregating and considering separately the assets and liabilities of the partnership and the respective assets and liabilities of the individual partners. This process is called:

Correct Answer
verified

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.

Correct Answer
verified

Actual authority terminates upon:

Correct Answer
verified

Partners are required to participate in winding up the partnership.

Correct Answer
verified

Under the RUPA, the partners have what type of liability for all contract obligations of the partnership?

Correct Answer
verified

Roberts, Smith, and Thomas have been partners for twenty years. The partners, however, are now collecting debts, converting assets to cash, paying creditors, and distributing remaining assets to each partner. Roberts, Smith, and Thomas are engaged in:

Correct Answer
verified

Under the UPA, a creditor of a partnership must name all the partners as defendants in a suit on a contract obligation of the partnership.

Correct Answer
verified

The withdrawal of a partner in a partnership at will may be either a rightful or wrongful dissociation.

Correct Answer
verified

A retiring partner has no way of being discharged from her existing liabilities other than by paying them off.

Correct Answer
verified

Takira leaves the Coastal Area 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 Coastal Area .

Correct Answer
verified

In a three person partnership, one partner commits fraud which creates a liability to the partnership of $9,000. If the three partners share profits and losses equally, each partner's liability to the partnership for the fraudulent act is $3,000.

Correct Answer
verified

A partner has implied authority to:

Correct Answer
verified

Exam 31: Operation and Dissolution of General Partnerships

Define dissolution under the UPA and discuss its three causes.

Correct AnswerverifiedThe UPA defines dissolution as the chang...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Under the UPA, partners are jointly l...View AnswerShow Answer

__________ is available to a third person to whom a representation is made and who justifiably relies on the representation.

Correct AnswerverifiedShow Answer

David, a partner in the Speedy Delivery partnership, negligently drove his delivery truck onto the curb during a rush-hour package delivery. Marlene was injured. Against whom can Marlene collect?

Correct AnswerverifiedShow Answer

Under the UPA, after dissolution:

Correct AnswerverifiedShow Answer

Which of the following is NOT considered to be dissolution by operation of law under the UPA?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Smarth, King, and Finkel have been partners for years, but a court of equity is now segregating and considering separately the assets and liabilities of the partnership and the respective assets and liabilities of the individual partners. This process is called:

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Actual authority terminates upon:

Correct AnswerverifiedShow Answer

Partners are required to participate in winding up the partnership.

Correct AnswerverifiedShow Answer

Under the RUPA, the partners have what type of liability for all contract obligations of the partnership?

Correct AnswerverifiedShow Answer

Roberts, Smith, and Thomas have been partners for twenty years. The partners, however, are now collecting debts, converting assets to cash, paying creditors, and distributing remaining assets to each partner. Roberts, Smith, and Thomas are engaged in:

Correct AnswerverifiedShow Answer

Under the UPA, a creditor of a partnership must name all the partners as defendants in a suit on a contract obligation of the partnership.

Correct AnswerverifiedShow Answer

The withdrawal of a partner in a partnership at will may be either a rightful or wrongful dissociation.

Correct AnswerverifiedShow Answer

A retiring partner has no way of being discharged from her existing liabilities other than by paying them off.

Correct AnswerverifiedShow Answer

Takira leaves the Coastal Area 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 Coastal Area .

Correct AnswerverifiedShow Answer

In a three person partnership, one partner commits fraud which creates a liability to the partnership of $9,000. If the three partners share profits and losses equally, each partner's liability to the partnership for the fraudulent act is $3,000.

Correct AnswerverifiedShow Answer

A partner has implied authority to:

Correct AnswerverifiedShow Answer

Correct Answer
verified
The UPA defines dissolution as the chang...
View Answer

Correct Answer
verified

Correct Answer
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a. Under the UPA, partners are jointly l...
View Answer

Correct Answer
verified

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Correct Answer
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