Q&A Hero

Q: In a limited partnership, a limited partner has full responsibility for the partnership and for all its debts.

Q: In theory, causation in fact is limitless.

Q: Unless otherwise agreed, the participants in a joint venture share its profits equally.

Q: Punitive damages are intended to punish a wrongdoer and deter others.

Q: In a limited partnership, a limited partner is liable for all partnership debts.

Q: Omega Communications, Inc., is an Internet service provider. Product Promotions, Inc., spams Omega's customers, some of whom then cancel Omega's services. On what ground could Omega recover damages from Product Promotions?

Q: In a limited liability partnership, a partner can be exempt from personal liability for the malpractice of other partners.

Q: A joint venture is taxed like a partnership.

Q: Eagle Engineering, Inc., and Fast Code Corporation market competitive software products. Eagle launches an advertising campaign in which Eagle claims that Fast Code, instead of testing its software before it is marketed, has its customers "test" the software by using it. Fast Code knows this is not true but begins to lose sales to Eagle. On what grounds could Fast Code sue Eagle for to Fast Code's reputation?

Q: A limited liability partnership allows its partners to avoid personal liability for the malpractice of other partners.

Q: Giving control of a joint venture to one of its participants does not affect the status of the relationship.

Q: April posts a defamatory note about Brad in an online newsgroup maintained by Comp Online, Inc., an Internet service provider. Most likely to be held liable for the remark is a. April and Comp USA. b. April only. c. Comp USA only. d. neither April nor Comp USA.

Q: If a partnership's liabilities are greater than its assets, the partners bear the losses.

Q: Unless otherwise agreed, the participants in a joint venture have an equal voice in controlling the enterprise.

Q: The dissociation of a mem­ber of a limited liability company in violation of the operating agreement is legally wrongful.

Q: Macro, Inc., believes that Micro Corporation is using Macro's trade secrets on Micro's server, without its consent. Macro takes Micro's server from Net Service Company without Micro's consent and keeps it for two years. Macro's most likely successful defense in a tort action would be a. consent. b. "danger invites rescue" doctrine. c. necessity. d. privilege.

Q: Any event that makes its unlawful for a partnership to continue its business will result in dissolution.

Q: Most limited liability company statutes have strict provisions regu­lating members' meetings.

Q: Dian, a clerk at an Entertainment Unlimited store, takes a DVD player from the store without permission. Dian is liable for a. appropriation. b. conversion. c. disparagement of property. d. wrongful interference with a business relationship.

Q: A partner may dissociate from a partnership by declaring bankruptcy..

Q: City Times, a newspaper, knowingly publishes an article falsely stating that the inventory of Walco, a discount store, consists of stolen goods. City Times is liable for a. defamatory mischief. b. malicious mischief. c. slander of quality. d. slander of title.

Q: On a partner's dissociation, his or her duty of loyalty to the partnership ends.

Q: In a limited liability company, members do not have to participate in its manage­ment.

Q: Fred files a suit against Gail for conversion of property that Fred asserts he owns. Gail will not be liable if she can show that a. Fred does not intend to use the property. b. Fred has no interest in the property. c Gail has no interest in the property. d. Gail intended to return the property.

Q: In a limited liability company, members cannot participate in its management.

Q: A partnership ends if one partner dissociates from the firm.

Q: Bill enters onto Cindy's property to help Donna, who is in danger. Cindy charges Bill with trespass to land. Bill has a. a complete defense. b. a partial defense. c. a possible defense. d. no defense.

Q: In a limited liability company, members must participate in the manage­ment of the company.

Q: A partner always has the power and the right to dissociate from the partnership.

Q: Most limited liability company (LLC) statutes provide that unless the members agree otherwise, all profits of the LLC will be divided equally.

Q: In a general partnership, the partners are personally liable for the debts of the partnership.

Q: Delta Corporation uses a bot to continually comb the Web site of Gamma, Inc., for information and its updates. Under the reasoning of the court in Case 6.2, Register.com, Inc. v. Verio, Inc., if Delta has committed a tort, it is most likely because a. Delta got caught. b. Delta's activities could lead to a crash of Gamma's computer system. c. Gamma did not foresee this use of a bot. d. Gamma's activities led to Delta's use of this bot.

Q: A limited liability company is required to have an operating agreement.

Q: A third party cannot sue one of the partners of a partnership without suing all of the partners of the partnership.

Q: As a joke, Adam takes Beth's business law book and hides it so that Beth cannot find it during the week before the exam. Adam may have committed a. appropriation. b. conversion. c. intentional infliction of emotional distress. d. trespass to personal property.

Q: In a general partnership, the acts of one partner in the ordinary course of business subjects both the partner and the firm to liability.

Q: An operating agreement for a limited liability company need not be in writing.

Q: Lon trespasses on Mega Corporation's property. Through the use of reasonable force, Mega's security guard Ned detains Lon until the police arrive. Mega is liable for a. assault and battery. b. false imprisonment. c. intentional infliction of emotional distress. d. none of the above.

Q: Phil invites Quinn onto his land. Quinn commits trespass if a. Phil asks Quinn to leave and Quinn refuses. b. Quinn enters the property in the evening. c. Quinn makes disparaging remarks about Phil to third parties. d. the property is damaged during the visit.

Q: A partner is entitled to make secret profits or put self-interest before his or her duty to the interest of the partnership.

Q: A foreign limited liability company (LLC) is an LLC owned by an entity outside the United States.

Q: Acme Computers, a computer store, takes unethical steps to divert the customers of Cyber Goods, an adjacent competing store. Acme may be liable for a. appropriation. b. wrongful interference with a business relationship. c. wrongful interference with a contractual relationship. d. none of the above.

Q: A partner owes to the partnership and the other partners a duty of care.

Q: A limited liability company cannot be taxed as a partnership.

Q: For federal income tax purposes, a limited liability company can choose to be taxed like a corporation.

Q: Auto Maker, Inc., uses, in its television ads, a recording by Britney. For this use, Auto pays a fee to the owner of the rights to the recording. Over time, the song comes to be associated with Auto's products. Britney resents this association and sues Auto. Auto has committed a. appropriation. b. wrongful interference with a business relationship. c. wrongful interference with a contractual relationship. d. none of the above.

Q: A partner owes to the partnership and the other partners a duty of loyalty.

Q: A partner is a co-owner of partnership property.

Q: A limited liability company limits the personal liability of its members.

Q: Adam, a bakery products salesperson, follows Blythe, a salesperson for a competitor, as she attempts to make sales to food stores. Adam solicits each of Blythe's customers. Adam is most likely liable for wrongful interference with a. a bargaining relationship. b. a business relationship. c. a contractual relationship. d. a customer relationship.

Q: The members, managers, and agents of a limited liability company are liable for its obligations by virtue of their status.

Q: Lana accuses Megan of fraud. Normally, the reliance that gives rise to fraud is based on a statement of a. fact. b. illusion. c. law. d. opinion.

Q: Each partner in a partnership has the right to full and complete information concerning the conduct of all aspects of partnership business.

Q: For federal jurisdictional purposes, a limited liability company can choose to be treated like a corporation.

Q: Property acquired by the partnership is the property of the partners individually.

Q: Dan writes, falsely, that Eve is stealing from their employer. The statement is defamatory only if a. a third party reads it. b. Eve suffers emotional distress. c. the statement is phrased in annoying terms. d. the statement is published in the media.

Q: The majority rule controls decisions on ordinary matters connected with partnership business.

Q: Mary is accused of slander. Slander includes a. neither oral nor written defamatory statements. b. oral and written defamatory statements. c. oral defamatory statements only. d. written defamatory statements only.

Q: Forming a limited liability company requires filing articles of organization in a state office.

Q: In a general partnership, all partners have equal rights in managing the partnership.

Q: Mona says, falsely, that Nick is stealing from their employer. The statement is defamatory only if a. a third party hears it. b. Nick suffers emotional distress. c. the statement is made in an annoying manner. d. the statement is published in the media.

Q: Federal law dictates the requirements for the formation of a limited liability company.

Q: Partnership profits must be shared in the same proportion as the partner' investment of capital in the firm.

Q: Ron, the manager of Sav-Mart Discount Store, detains Tina, whom Ron suspects of shoplifting. Tina sues Ron, alleging that the detention was false imprisonment. Ron is liable if Tina a. did not actually shoplift. b. had not shoplifted in the past. c. had probable cause to leave the premises. d. was detained for an unreasonably long time.

Q: A limited liability company is a legal entity apart from its owners.

Q: A limited liability company is operated in compliance with state law.

Q: Under no circumstances can a non-partner be regarded as an agent whose acts are binding on the partnership.

Q: Larry files a suit against Myra for assault and battery. Myra can raise the defense of property as a defense to the charge of a. assault only. b. assault or battery. c. battery only. d. neither assault nor battery.

Q: International Exports, L.P., is a limited partnership, with $100,000 in de­clared but unpaid profits. International's creditors include Friendly Credit Corporation for $5,000 and Gwen, one of International's limited partners, also for $5,000. When Harry, one of International's general partners, de­cides to retire, the other general partners vote to liquidate and dissolve the firm. The limited partners, who are not asked their opinions, want Interna­tional to continue in business and file a suit against the general partners to compel this result. Can the court order International to continue? If not, what is the priority of the distribution of International's assets on its dissolution?

Q: Ann believes that Burt is about to hit her. To prevent harmful contact in this situation, Ann may use a. any force. b. any force, except force that is likely to cause death. c. force that is reasonably necessary. d. no force.

Q: Withdrawal from a partnership for a term prematurely does not constitute a breach of the partnership agreement.

Q: Sally and Tom decide to go into business, selling discounted merchandise through their Web site "e-Buy." They sign a partnership agreement that requires Sally to contribute $12,000 and Tom to contribute $8,000 in capital to start the firm. The agreement also states that only Sally will have the authority to bind the partnership in deals with third parties, but the agreement says nothing about the management of the firm or a division of profits. Without Sally's knowledge, Tom tells United Computer Products, Inc., that he represents the firm and signs a contract with United to buy hard drives for resale on e-Buy. In the first year, e-Buy makes a profit of $50,000. What are the partners' rights with respect to the management of the firm? Is the partnership bound to the contract with United? Do the partners split the first year's profits? If so, how much is each entitled to?

Q: Federal law prohibits sending unsolicited commercial e-mail to randomly generated e-mail addresses.

Q: A partnership agreement can include almost any terms that the partners wish.

Q: A partner's profit from a partnership is taxed as income to the firm.

Q: Bret is a general partner in Capitol Realty, LLLP, a limited liability lim­ited partnership, which cannot pay its debts. Bret is personally li­able for the debts a. in proportion to the number of partners in the firm. b. to no extent. c. to the extent of his capital contribution. d. to the full extent.

Q: An Internet service provider (ISP) is not normally liable for its users' defamatory remarks.

Q: An oral agreement to form a partnership can never be enforced.

Q: Energy Unlimited, LP, is a limited partnership to which its partners, in­cluding Fink, have contributed capital. Energy's creditors include Graves Engineering, Inc. On Energy's dissolution, its assets will be distributed to pay a. Fink and Graves proportionately. b. Fink first. c. Graves first. d. neither Fink nor Graves.

Q: Connie, Drew, and Ellen are the general partners of Foreign Auto Repair, a lim­ited partner­ship. Connie dies. The partnership can a. continue only after a distribution of its assets. b. continue only as a general partnership. c. continue only if Drew and Ellen consent. d. not continue because Connie's death dissolves the firm.