BUSA LAW EXAM 2

Billy bob owns billy bob's hot dogs as a s.p. His liability for the business debts is

A legal entity

Partners have an equal voice in management unless they agree otherwise.

A employer is liable for the tort committed by his employee if the agent/employee was doing his job duties when tort hap

A partnership is not a legal entity.

In the event of material brach, the non-breaching party is discharged from further performance and may sue

One can not be a stockholder, director and an officer in the same c. at the same time.

Day to day management of a l.p. is done by the limited partners.

It is not necessary to file any formal documents with the state in order to form or create a corporation.

The p. agreement can provide that profits and losses be shared equally.

Unless required by the Statute of Frauds, a contract does not have to be in writing to be enforceable

Tom hires Bob to pave his driveway. Through the work Bob asks for an additional $1,000. Tom agrees. The promise is

A contract made by a minor is voidable at his option except for necessities.

Giving an opinion is fraud

A limited partner sells his interest in the l.p. to another person. This sale

Upon disaffirming, a minor must return what he purchased in the same condition as when the contact was made.

A minor can disaffirm a contract only while he is a minor.

Death of a partner results in dissolution of the p.

restraint of trade, one promises not to compete must be reasonable to duration and geographical area to be enforceable

If there is serious intent to enter into a contract, the law looks at what the parties said and did rather than thoughts

Tom owes Bob $100,000. Instead of paying Bob the money, Tom gives Bob his watch and Bob accepts it as payment. This is

Silence by the offeree is acceptance of the offer.

Creditors of the p. must be paid in full before partners receive any money following a dissolution and liquidation

A c. is dissolved by the death of an owner or sale of his stock.

The day to day management is done by

Each partner's liability for debts is limited to the amount of capital he contributes to the p.

A stockholder enjoys limited liability for c. debts.

A s.p. requires the filing of certain documents with the state in order to be created.

Death or insanity of the offeror or offeree will terminate the offer.

Tom offers to sell his boat to Bob for $10k, Bob tells Tom that price is too high but he will pay Tom $7,500. This is

The main advantage of a l.p. is that the L.P's liability for debts is limited to the amount of his capital contribution.

Each partner declares his share of the partnership profit on his individual tax return.

Tom promises his bank that he will pay the debt owed by Tom's son. Tom's promise is enforceable

Tom points a gun at Bob and tells him to sign a contract. Bob does so. This is

As a general rule, a contract that is illegal or unlawful will not be enforced and court will leave the parties as is

General partners may contribute capital only in the form of cash and/or property.

Tom joins an existing partnership as a general partner. A debt made before he joined the partnership becomes due. He is

As a general rule, consideration does not have to have any actual monetary value

Tom, Dick, and Harry want to form a l.p. The l.p. must have

contract appears valid on its face but has defect in it giving one party option to set it aside, this voidable contract

Intoxicated but aware, Bob agrees to two year cell phone service contract with Verizon at more than average market price

Only human beings can be partners

Landlord and tenant sign a lease with a clause that the landlord will not be liable for to tenant for futurenegligence .

Events such as strikes, wars, price increases, shortages of materials, will discharge a party from further performance

An offer can be revoked at any time prior to acceptance, if states that the offer will remain open for a certain period.

In a s.p. the business asa legal entity dies with the owner.

Which of the following has double taxation of profits?

A partner who leaves the p. is no longer personally liable for partnership debts made prior to his leaving.

Income from a s.p. is treated as owner's individual income and is declared income on his individual personal tax return

Tom offers to sell his car to Bob. No time for acceptance is put in the offer. This offer will terminate