A partnership records a certified statement in county land records saying Partner lacks authority to sell partnership real property without written consent. Partner later signs a warehouse sale contract with a buyer who...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
Vine Street Studios is a general partnership that owns a warehouse and rents artist studios. The partnership filed a statement of partnership authority with the state filing office and recorded a certified copy in the co...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
Canyon Tile is a general partnership owned by Nora, Omar, and Sam. The partnership installs tile in apartment buildings. While driving a partnership truck to deliver tile to a job site, Sam ran a red light and injured Pe...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
Laurel, Miguel, and Priya operate a bakery as a general partnership. Their written partnership agreement says that no partner may buy supplies worth more than $25,000 without unanimous approval. The partners never told v...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
Oak Repair is a general partnership owned by Alex and Bri. Before Casey joined, Oak Repair owed PartsCo $90,000 for engine parts. Casey then bought into the partnership and became a partner. Two months later, Oak Repair...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
...lit profits from several early sales, used a website listing both as "partners," and gave Lender a pitch deck saying they were "equal partners." Blake attended the meeting and did not object when Arden told Lender that b...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A business founder lets a lender believe she is a partner, attends the loan meeting, says nothing when introduced as an equal partner, and the lender extends credit in reliance on that representation. Which statement is...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A partner in a general partnership signs an ordinary supply contract for the partnership's business. Which statement best describes the partner's authority? This question tests the basic partner-agency rule. Revised Unif...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A general partnership defaults on an ordinary business debt to a vendor. Which statement best describes general partner liability? This question tests personal liability of general partners for partnership obligations. R...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A newly admitted partner signs a separate one-page guaranty of a partnership post-admission parts invoice. The partnership does not pay. Which statement is most accurate? This question tests a partner separate guaranty o...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A partner negligently injures a customer while delivering partnership inventory to a job site. Which statement best describes partnership liability? This question tests partnership liability for a partner's wrongful act...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A partner signs a large ordinary-course supply contract despite an internal agreement requiring unanimous approval for purchases above $20,000. What fact would most help the partnership avoid liability to the supplier? T...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A partnership agreement says no partner may sign purchases above $20,000 without unanimous consent. A supplier without notice accepts a $50,000 ordinary-course order from one partner. Which statement is most accurate? Th...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A person joins an existing general partnership after the partnership already owes a vendor $80,000. Which statement best describes the new partner's personal liability for that old debt? This question tests personal liab...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A vendor obtains a money judgment against a general partnership but not against any individual partner. The vendor immediately tries to levy on one partner's personal account. What is the best analysis? This question tes...
Citations: Revised Uniform Partnership Act secs. 301, 303, 305, 306, 307, 308
A partner in a partnership votes against expanding the business because the partner believes the expansion would increase personal workload without fair compensation. The partner discloses that concern and does not misle...
Citations: Model Business Corporation Act secs. 8.30-8.32 and 8.60-8.63, Revised Uniform Partnership Act sec. 404, Revised Uniform Limited Liability Company Act secs. 105 and 409
Sunset Cabinetry was a general partnership owned by Alicia and Ben. The partnership had a long-term relationship with a hotel chain that bought custom furniture every year. Without telling Alicia, Ben copied Sunset's cus...
Citations: Model Business Corporation Act secs. 8.30-8.32 and 8.60-8.63, Revised Uniform Partnership Act sec. 404, Revised Uniform Limited Liability Company Act secs. 105 and 409
...g on a business for profit, the LLC must also be treated as a general partnership. Which statement is most accurate? This question tests the boundary between informal partnership formation and a business organized under...
Citations: Revised Uniform Partnership Act secs. 202-204, 401
Three siblings operated a Central Valley produce partnership. They put Nina in charge of purchases and told suppliers that she was the partnership's "purchasing manager." Internally, the siblings agreed that Nina could b...
Citations: Restatement (Third) of Agency secs. 2.01, 2.02, 2.03, 3.03, 4.01
...siness Corporation Act secs. 8.30-8.32 and 8.60-8.63, Revised Uniform Partnership Act sec. 404, Revised Uniform Limited Liability Company Act secs. 105 and 409
Citations: Model Business Corporation Act secs. 8.30-8.32 and 8.60-8.63, Revised Uniform Partnership Act sec. 404, Revised Uniform Limited Liability Company Act secs. 105 and 409
...siness Corporation Act secs. 8.30-8.32 and 8.60-8.63, Revised Uniform Partnership Act sec. 404, Revised Uniform Limited Liability Company Act secs. 105 and 409
Citations: Model Business Corporation Act secs. 8.30-8.32 and 8.60-8.63, Revised Uniform Partnership Act sec. 404, Revised Uniform Limited Liability Company Act secs. 105 and 409
...siness Corporation Act secs. 8.30-8.32 and 8.60-8.63, Revised Uniform Partnership Act sec. 404, Revised Uniform Limited Liability Company Act secs. 105 and 409
Citations: Model Business Corporation Act secs. 8.30-8.32 and 8.60-8.63, Revised Uniform Partnership Act sec. 404, Revised Uniform Limited Liability Company Act secs. 105 and 409
A partner in a general partnership uses the partnership's confidential customer list to obtain a side contract for herself before the partnership dissolves. Which statement best describes the partner's duty? This questio...
Citations: Model Business Corporation Act secs. 8.30-8.32 and 8.60-8.63, Revised Uniform Partnership Act sec. 404, Revised Uniform Limited Liability Company Act secs. 105 and 409
A partner makes a poor purchasing decision that causes losses. The other partner alleges breach of the statutory duty of care but proves only ordinary negligence. Which statement best describes the duty-of-care standard?...
Citations: Model Business Corporation Act secs. 8.30-8.32 and 8.60-8.63, Revised Uniform Partnership Act sec. 404, Revised Uniform Limited Liability Company Act secs. 105 and 409
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