SET B BUSLAW2 MIDTERM EXAM Write only your Name, Student Student No. and Section on te u!!er le"t#and corner o" ti$ !a%e. Write Write your an$&er$ on te An$&er Seet. E'ce!t "or te a(o)e#mentioned entrie$, to%eter &it te An$&er Seet, !lea$e return te *ue$tionnaire UNMAR+ED, oter&i$e you &ill %et a "ailin% %rade "or te Midterm$. eatin% $all (e $e)erely dealt. -.
a. (.
A#/0111 B#/3111 #/2111 D#notin% A#/2011 B#/2011 #/2011 D#/2011 2.
a. (. c. d.
(. c. d.
d.
c. a!itali$t#Indu$trial !artner d. Indu$trial !artner
Te recei!t recei!t (y a !er$on !er$on o" a $are o" te te !ro"it$ !ro"it$ o" a (u$ine$$ (u$ine$$ i$ !rima !rima "acie e)idenc e)idence e tat e i$ a !artner !artner in te (u$ine$$, e'ce!t &ere $uc !ro"it$ &ere recei)ed in !ayment
A !artner$ !artner$i! i! &ic &ic com!ri$ com!ri$e$ e$ all te !ro"it !ro"it$ $ tat tat te !artne !artner$ r$ may ac*uire ac*uire (y teir &or7 &or7 or indu$tr indu$try y durin% te e'i$tence o" te !artner$i! i$ called
Uni) Uni)er er$a $all !art !artne ner$ r$i i! ! o" all all !re$ !re$en entt !ro! !ro!er erty ty Uni)er$al !artner$i! o" !ro"it$ @.
a. (.
In ca$e o" imminent imminent lo$$ lo$$ o" te (u$ine$$, (u$ine$$, te "ollo&in "ollo&in% % !artner$ !artner$ mu$t %i)e additio additional nal ca!ital, ca!ital, e'ce!t e'ce!t
A$ a de( de(tt (y (y in$ in$ta tall llme ment nt$ $ A$ &a%e$ &a%e$ o" an em!loy em!loyee ee or rent rent to to a landl landlord ord A$ an annui annuity ty to a &ido& &ido& or re!re$enta re!re$entati)e ti)e o" o" a decea$ed decea$ed !artner !artner All All o" o" te te a(o a(o)e ?.
a. (.
Witout Witout te &ritten &ritten con$ent con$ent or rati"icati rati"ication on o" te $!eci"ic $!eci"ic act (y all limited limited !artner$ !artner$,, %eneral %eneral !artner:$; !artner:$; a)e no autority to
a!itali$t !artner =eneral !artner >.
a. (. c. d.
A !artner$ !artner$i! i! i$ di$$ol)e di$$ol)ed d &itout &itout )iolation )iolation o" o" te !artner$i !artner$i! ! a%reement a%reement (y (y
Do any any act in in contra contra)en )entio tion n o" te te certi" certi"ica icate te Do any act act ma7in% ma7in% it im!o$$i(l im!o$$i(le e to carry on on te ordinar ordinary y !artner$i !artner$i! ! (u$ine$$ (u$ine$$ on"e$ on"e$$ $ 9ud%me 9ud%ment nt a%ain a%ain$t $t te te !artne !artner$ r$i! i! All All o" o" te te a(o a(o)e <.
a. (.
All !artner$ !artner$ are $olida $olidarily rily lia(le lia(le &it &it te !artner$ !artner$i! i! "or te !ur!o$ !ur!o$e e o" ma7in% %ood %ood a lo$$ lo$$
Termin Terminatio ation n o" it$ de"ini de"inite te term or !articul !articular ar underta7 underta7in% in% E'!re$$ &ill o" any !artner, !artner, actin% in %ood "ait, &en no de"inite term or !articular underta7en i$ $!eci"ied E'!re$$ E'!re$$ &ill o" all all te !artner$ !artner$ &o a)e a)e not a$$i%ned a$$i%ned teir teir intere$t$, intere$t$, (e"ore (e"ore or a"ter a"ter te end o" any "i'ed "i'ed term or underta7in% Bona "ide "ide e'!ul$i e'!ul$ion on o" any any !artner !artner "rom te !artner !artner$i! $i! (u$in (u$ine$$ e$$ 0.
a. (. c. d.
6ne or more more (ut le$$ tan tan all te !artner !artner$ $ a)e no autority autority to !er"orm !er"orm te te "ollo&in "ollo&in% % act$, e'ce!t e'ce!t
Were Were a !artne !artnerr actin% actin% &itin &itin te $co!e $co!e o" i$ a!!arent a!!arent autori autority ty recei)e$ recei)e$ money money8!r 8!ro!e o!erty rty o" a 3 rd !er$on and mi$a!!lie$ it Wer Were e te te !art !artne ner$ r$i i! ! in te te cour cour$e $e o" it$ it$ (u$i (u$ine ne$$ $$ rece recei) i)e$ e$ mone money y8!ro 8!ro!e !erty rty o" a 3 rd !er$ !er$on on and it i$ mi$a!!ro!riated (y a !artner &ile te money8!ro!erty in !artner$i! cu$tody Were (y any &ron%"u &ron%"ull act or omi$$ion omi$$ion o" any !artner !artner actin% actin% in te ordinary ordinary cour$e cour$e o" !artner$i! !artner$i! (u$ine$ (u$ine$$ $ or &it te con$ent o" i$ !artner$, lo$$ or in9ury i$ cau$ed to a !er$on &o i$ not a !artner in te !artner$i! All All o" o" te te a(o a(o)e 5.
a. (. c.
c. A#/5 #/5111 B#/3111 #/2 #/2111 D#/-111 d. A#/5111 B#/5111 #/2111 D#notin%
Any act tat tat &ould &ould ma7e it it im!o$$i( im!o$$i(le le to carry carry on te ordin ordinary ary !artner$ !artner$i! i! (u$ine$ (u$ine$$ $ Su(mit Su(mit a !artne !artner$i! r$i! claim or lia(il lia(ility ity to ar(itratio ar(itration n Reno Renoun unce ce a !art !artne ner$ r$i i! ! clai claim m on)ey !artne !artner$i r$i! ! !ro!erty !ro!erty in te ordinar ordinary y cour$e o" !artner !artner$i! $i! (u$ine (u$ine$$ $$ 3.
a.
A, B, and D are !artner$. !artner$. Teir Teir contri(ut contri(ution$ ion$ A#/01,111 A#/01,111 B#/31,1 B#/31,111 11 #/21,111 #/21,111 and D#$er)ice$. D#$er)ice$. Tey Tey a)e un!aid !artner$i! de(t$. A"ter e'au$tin% !artner$i! a$$et$, tere remained an un!aid (alance o" /-1111. Wo $ould !ay and o& muc eac4
c. /art /artic icul ular ar !art !artne ner$ r$i i! ! d. /artner$i! at &ill
A !artner !artner$i $i! ! &itout &itout de"ini de"inite te !eriod !eriod o" e'i$te e'i$tence nce tat can (e di$$ol di$$ol)ed )ed at any time (y any o" te !artner$ i$ called
Uni) Uni)er er$a $all !art !artne ner$ r$i i! ! o" all all !re$ !re$en entt !ro! !ro!er erty ty Uni)er$al !artner$i! o" !ro"it$
c. /art /artic icul ular ar !art !artne ner$ r$i i! ! d. /artner$i! at &ill
-1. A !artner !artner &o a$ all te ri%t$, ri%t$, !o&er and $u(9ect $u(9ect to all te re$triction$ re$triction$ o" a %eneral %eneral !artner !artner (ut &o$e lia(ility i$, amon% tem$el)e$, limited to i$ ca!ital contri(ution i$ called a. (.
=eneral !artner Limited !artner
c. =eneral#limited !artner d. Dormant !artner
--. Re"er$ to !er$on$ &o re!re$ent tem$el)e$, or con$ent to anoter anoter or oter$ to re!re$ent tem to anyone anyone tat tey are !artner$ a.
=eneral !artner$i!
c. /artner$i! (y e$to!!el
2
(.
Limited !artner$i!
d. None o" te a(o)e
-2. an only (e made &it te con$ent o" all te !artner$ a. (.
Wai)er or com!romi$e Sell e*ui!ment
c. Borro& money d. None o" te a(o)e
-3. A !artner &o i$ not lia(le "or te !ayment o" !artner$i! de(t$ to te e'tent o" i$ $e!arate !ro!erty a"ter te !artner$i! a$$et$ are e'au$ted i$ called a. (.
Mana%in% !artner Limited !artner
c. =eneral !artner d. Silent !artner
-5. A, B and are !artner$. Teir contri(ution$ A#/<1,111 B#/51,111 #$er)ice$. Tey did not a%ree on o& to di)ide !ro"it$ and lo$$e$. I" tere i$ a /-1,111 lo$$, o& $ould tey $are te lo$$4 a. (.
A#/<111 B#/5111 #notin% A#/3111 B#/2111 #/0111
c. A#/3011 B#/3011 #/3111 d. A#/3011 B#/2111 #/5111
a. (. c. d.
-0. A$ a %eneral rule, a !artner cannot a$7 "or a "ormal accountin% o" te a""air$ o" te !artner$i! durin% it$ e'i$tence and (e"ore it i$ di$$ol)ed, e'ce!t Wen e i$ &ron%"ully e'cluded "rom te !artner$i! (u$ine$$ Wen te ri%t e'i$t$ under te term$ o" any a%reement Wen circum$tance$ render it 9u$t and rea$ona(le All o" te a(o)e -<. A !artner$i! i$ automatically di$$ol)ed, e'ce!t
a. (. c. d.
By te deat o" any !artner By te in$ol)ency o" any !artner or o" te !artner$i! By te ci)il interdiction o" any !artner By te in$anity o" any !artner ->. I" a !artner i$ in$ol)ent, te -$t order o" !re"erence in te di$tri(ution o" i$ a$$et$ i$
a. (. c. d.
/artnerC$ contri(ution to te !artner$i! /artner$i! creditor Se!arate creditor o" te !artner /ro#rata (et&een te $e!arate creditor$ and !artner$i! creditor$ -?. May (e re*uired additional contri(ution in ca$e o" imminent lo$$
a. (.
a!itali$t !artner Limited /artner
c. Indu$trial !artner d. E'!ul$ion o" any !artner
-@. Wic o" te "ollo&in% may (e a cau$e "or in)oluntary di$$olution4 a. (.
E'!re$$ &ill o" any !artner In$ol)ency o" any !artner
c. Termination o" te term d. E'!ul$ion o" any !artner
21. A $u($tituted limited !artner i$ a. (. c. d.
A !er$on admitted a$ a !artner (y te oter !artner$ A (uyer o" ri%t o" a decea$ed !artner An a$$i%nee admitted to all te ri%t$ o" a limited !artner All o" te a(o)e 2-. A !artner$i! i$ di$$ol)ed on te deat o" a
a. (.
=eneral !artner Indu$trial !artner
c. =eneral#limited !artner d. All o" te a(o)e
22. A !artner$i! a. (. c. d.
I$ created (y a%reement o" te !artner$ a$ 9uridical !er$onality $e!arate and di$tinct "rom tat o" eac o" te !artner$ May (e con$tituted in any "orm a$ a %eneral rule All o" te a(o)e 23. Te "ollo&in% !er$on$ are di$*uali"ied to "orm a uni)er$al !artner$i!, e'ce!t
a. (. c. d.
Broter and Si$ter u$(and and Wi"e To$e %uilty o" adultery and concu(ina%e To$e %uilty o" te $ame criminal o""en$e, i" te !artner$i! i$ entered into in con$ideration o" te $ame 25. 3 o" te "ollo&in% are ri%t$ o" a !artner, e'ce!t
a. (.
To a$$ociate anoter !er$on to i$ $are To admit anoter !artner
c. To in$!ect and co!y !artner$i! (oo7$ d. To a$7 di$$olution o" te "irm at te !ro!er time
3
20. Wic o" te "ollo&in% i$ not an element o" a !artner$i!4 a. (.
alid contract ontri(ution o" money, !ro!erty or indu$try to common "und 2<. Sometime$ termed dormant !artner
a. (.
Limited !artner a!itali$t !artner
c. Intent to en%a%e in la&"ul (u$ine$$ d. None o" te a(o)e
c. Secret !artner d. None o" te a(o)e
2>. In 3 o" te "ollo&in% in$tance$, te certi"icate o" a limited !artner$i! may (e amended. Wic i$ te e'ce!tion4 a. (. c. d.
an%e in te caracter o" te (u$ine$$ Tere i$ a "al$e or erroneou$ $tatement in te certi"icate Deat o" a %eneral !artner A !er$on i$ $u($tituted a$ a limited !artner 2?. A !artner &o contri(ute$ i$ &or7, la(or or indu$try to te common "und o" te !artner$i! i$ called
a. (.
Indu$trial !artner a!itali$t !artner
c. a!itali$t#Indu$trial !artner d. 6$ten$i(le !artner
2@. A !artner$i! a)in% "or it$ o(9ect determinate tin%$, teir u$e or "ruit$, or a $!eci"ic underta7in%, or te e'erci$e o" a !ro"e$$ion or )ocation i$ called a. (.
/artner$i! (y e$to!!el /articular !artner$i!
c. Uni)er$al !artner$i! o" all !re$ent !ro!erty d. Uni)er$al !artner$i! o" !ro"it$
31. A !artner in a limited !artner$i! cannot contri(ute a. (.
a$ /ro!erty and $er)ice$
c. /artly ca$ and !artly !ro!erty d. None o" te a(o)e
3-. A, B and are !artner$. Teir contri(ution$ A#/<1,111 B#/51,111 #$er)ice$. Tey a%reed to di)ide !ro"it$ and lo$$e$ ti$ &ay A#30F B#20F and #51F. I" tere i$ a /-1,111 !ro"it, o& $ould tey $are te !ro"it4 a. (.
A#/<111 B#/5111 #notin% A#/3111 B#/2111 #/0111
c. A#/3011 B#/2011 #/5111 d. A#/3011 B#/3011 #/3111
32. 6n a!!lication (y or "or a !artner te court $all decree a di$$olution &ene)er a. (. c. d.
A !artner (ecome$ in any oter &ay inca!a(le o" !er"ormin% i$ !art o" te !artner$i! contract A !artner a$ (een %uilty o" $uc conduct a$ it tend$ to a""ect !re9udicially te carryin% on o" te (u$ine$$ A !artner &ill"ully or !er$i$tently commit$ a (reac o" te !artner$i! a%reement tat it i$ not rea$ona(ly !ractica(le to carry on te (u$ine$$ in !artner$i! &it im All o" te a(o)e 33. M i$ an indu$trial !artner. Be$ide$ i$ $er)ice$, e al$o contri(uted ca!ital to te !artner$i!. Tere i$ no a%reement a$ to !ro"it$ or lo$$e$. Te $are o" M in te !ro"it i$
a. (. c. d.
Te remainin% !artner$ &ill determine i$ $are in te !ro"it$ om(ination o" letter cG and letter dG (elo& Suc $are a$ may (e 9u$t and e*uita(le under te circum$tance$ /ro#rata to i$ contri(ution$ 35. E)ery contract o" !artner$i! a)in% a ca!ital o" /3111 or more in money or !ro!erty $all a!!ear in a !u(lic in$trument &ic mu$t (e recorded in te SE. Hailure to com!ly &it $aid re*uirement$
a. (. c. d.
Will not a""ect te lia(ility o" a !artner$i! and te mem(er$ tereo" to 3rd !er$on$ Will render te !artner$i! )oid Will not %i)e te !artner$i! a le%al !er$onality Will %i)e te !artner$i! a de "acto e'i$tence 30. A !artner &o$e connection &it te !artner$i! i$ o!en and !u(lic, $uc a$ (y includin% i$ name in te "irm name o" te !artner$i!
a. (.
Nominal !artner 6$ten$i(le !artner
c. Secret !artner d. Dormant !artner
3<. A !artner &o doe$ not !artici!ate in te mana%ement o" te a""air$ o" te !artner$i! and &o$e connection &it it i$ not made 7no&n to te !u(lic i$ called a. (.
6$ten$i(le !artner Secret !artner
c. Silent !artner d. Dormant !artner
3>. 3 o" te "ollo&in% li$tin%$ are ri%t$ o" a %eneral !artner in a limited !artner$i! tat are al$o en9oyed (y a limited !artner. Wic amon% tem doe$ a limited !artner not en9oy4
4
a. (. c. d.
a. (. c. d.
To a)e !artner$i! (oo7$ 7e!t at !rinci!al !lace o" (u$ine$$ at a rea$ona(le our to in$!ect and co!y tem To a)e on demand true and "ull in"o o" all tin%$ a""ectin% !artner$i! a""air$ under rea$ona(le and 9u$t circum$tance$. To a)e di$$olution and &indin% u! (y decree o" te court To a)e all te ri%t$ and (e $u(9ect to all te re$triction$ and lia(ilitie$ o" a !artner in a !artner$i! &itout limited !artner$. 3?. A, B and are !artner$ in X om!any. D o&e$ te !artner$i! /5011. A recei)ed "rom D a $are o" /-011 aead o" B and , (y %i)in% D a recei!t "or i$ $are only. D (ecame in$ol)ent $u($e*uently. A can (e re*uired to $are te /-011 &it B and A cannot (e re*uired to $are te /-011 &it B and B and $ould e'au$t "ir$t all remedie$ to collect "rom D B can automatically deduct teir $are in te /-011 "rom AC$ ca!ital contri(ution in te !artner$i! 3@. A !artner &o a$ no )oice or $ay in te mana%ement o" !artner$i! a""air$ i$ called
a. (.
Nominal !artner Secret !artner
c. Silent !artner d. Dormant !artner
51. A !er$on &o, not a !artner, i$ made lia(le "or !artner$i! de(t$ to 3 rd !er$on$ (y rea$on o" i$ act$ or omi$$ion$ a. (.
6$ten$i(le !artner Nominal !artner
c. Silent !artner d. Dormant !artner
5-. A !artner &o contri(ute$ money or !ro!erty to !artner$i! ca!ital i$ called a. (.
Indu$trial !artner a!itali$t !artner
c. a!itali$t#Indu$trial !artner d. Nominal !artner
52. A and B are !artner$, &it A a$ mana%in% !artner. D o&e$ A /-1111 and te !artner$i! /0111. Bot de(t$ are due and demanda(le. D !aid A /3111. A i$$ued a recei!t in te !artner$i!C$ name to D. o& $ould te /3111 (e a!!lied4 a. (. c. d.
It $ould (e a!!lied to te inde(tedne$$ o" D to A. It $ould (e a!!lied to te inde(tedne$$ o" D to te !artner$i! /2111 $ould (e a!!lied to! te inde(tedne$$ o" D to te !artner$i! and /-111 to DC$ inde(tedne$$ to A /-111 $ould (e a!!lied to! te inde(tedne$$ o" D to te !artner$i! and /2111 to DC$ inde(tedne$$ to A 53. Wic o" te "ollo&in% i$ not a !ro!erty ri%t o" a !artner4
a. (. c. d.
i$ ri%t$ in $!eci"ic !artner$i! !ro!erty i$ intere$t in te !artner$i! i$ ri%t to !artici!ate in te mana%ement To demand true and "ull in"ormation o" all tin%$ a""ectin% te !artner$i! 55. E'ce!t &en autoried (y te oter !artner$, one or more (ut le$$ tan all te !artner$ a)e no autority to
a. (.
A$$i%n te !artner$i! !ro!erty in tru$t "or creditor$ Di$!o$e o" te %ood&ill o" te (u$ine$$
c. om!romi$e a !artner$i! claim or lia(ility d. All o" te a(o)e
50. A limited !artner $all not (ecome lia(le a$ a %eneral !artner unle$$ a. (.
e ta7e$ !art in te control o" te (u$ine$$ e contri(ute$ i$ $er)ice$ to te ca!ital o" te "irm
c. i$ $urname a!!ear$ in te !artner$i! name d. All o" te a(o)e
5<. A, B and are !artner$. A contri(ute /-1111 B, /0111 and , i$ $er)ice$. A"ter !ayment o" !artner$i! de(t$, /<111 remained a$ !ro"it$. IN te a($ence o" a contrary $ti!ulation, C$ $are i$ a.
Tat o" B c. Tat o" A /2111 d. Notin% 5>. A !artner &o contri(ute$ money or !ro!erty a$ &ell a$ i$ &or7 to !artner$i! ca!ital i$ called
a. (.
Indu$trial !artner a!itali$t !artner
c. a!itali$t#Indu$trial !artner d. Mana%in% !artner
5?. A !artner$i! $u""ered lo$$e$ in te -$t year o" o!eration$. X, a ca!itali$t !artner (ecame in$ol)ent. an e (e o(li%ed to $ell i$ intere$t to te oter$ !artner$ on te %round o" - $t re"u$al8!re#em!ti)e ri%t4 a. (. c. d.
Je$. XC$ re"u$al to contri(ute additional ca!ital re"lect$ lac7 o" intere$t to continue te (u$ine$$ No, tere i$ actually no imminent lo$$ o" te (u$ine$$ Je$, !ro)ided X i$ !aid te )alue o" i$ intere$t No, XC$ re"u$al i$ 9u$ti"ia(le
a. (. c. d.
5@. Wic o" te "ollo&in% i$ con$idered !rima "acie !roo" o" !artner$i! e'i$tence4 /ayment o" intere$t on a loan )arie$ &it te !ro"it$ o" te (u$ine$$ Recei!t$ (y a !er$on o" a $are in te !ro"it$ Sarin% o" %ro$$ return$ o" te (u$ine$$ Te !artie$ are e$ta(li$ed a$ co#o&ner$ o" a !ro!erty.
5
a. (. c. d.
01. A, B and are !artner$ in X om!any. D re!re$ented im$el" a$ a !artner to E, &o (elie)in% D, lent /-1111 to X om!any. A and B con$ented to $uc re!re$entation. Wo i$ lia(le to E4 All !artner$ includin% D A, B and D are !artner$ (y e$to!!el and are !ro#rata lia(le to E 6nly D. e alone made te re!re$entation A, B and . Tey (ene"ited "rom te credit E e'tended.
=
D LU+K
