Arthur and Alan decide to open a retail store and operate the business as a partnership. Needing some additional funds to get the business in operation, they ask Jayne whether she would be like to invest some funds in the business and become a limited partner. Assuming that Jayne becomes and remains a limited partner, which of the following statements concerning her status is/are correct?

Question 1
Arthur and Alan decide to open a retail store and operate the business as a partnership. Needing some additional funds to get the business in operation, they ask Jayne whether she would be like to invest some funds in the business and become a limited partner. Assuming that Jayne becomes and remains a limited partner, which of the following statements concerning her status is/are correct?
A. She may be involved in management of the business, but only to a rather limited degree.
B. She will not be entitled to share in the profits of the business.
C. She will not have any personal liability for partnership debts, although it is possible that partnership losses and debts may be significant enough that she may lose the amount she invested in the business.
D. both (b) and (c)

Question 2
Most franchise contracts are contracts of adhesion.
True
False

Question 3
Explain the difference between the implied warranty of merchantability and the warranty of fitness for a particular purpose
Question 24 of 84
If a seller discovers a buyer is insolvent, the seller:
A. must wait ten days before taking action.
B. has the right to stop delivery of any goods that are being shipped to the buyer.
C. has the right to stop delivery of any goods that are being shipped to the buyer so long as they have not already been entrusted to a carrier.
D. none of the above.

Question 4
To ensure compliance with the Foreign Corrupt Practices Act, a U.S. firm should:
A. conduct regular audits.
B. conduct background checks of each potential foreign agent.
C. be on the lookout for red flags warning of possible illicit payments.
D. all of the above.

Question 5
An agency at will means that:
A. each party has the power to terminate the agency even if there is no contractual right to do so.
B. only the principal can terminate the agency.
C. only the agent can terminate the agency.
D. none of the above.

Question 6
Which of the following implied warranties addresses the status of the ownership of goods:
A. title.
B. merchantability.
C. fitness.
D. both (b) and (c).

Question 7
By accepting goods, the buyer forfeits remedies against the seller for any non conformities in the goods.
True
False

Question 8
A principal may transact, through an agent, any business the principal lawfully could do in person.
True
False

Question 9
Under the UCC, benefits of warranties extend to persons who did not themselves actually purchase the particular defective goods.
True
False








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