1. Bob and Sue, who are both attorneys, agreed to share office space and other o
ID: 2441554 • Letter: 1
Question
1. Bob and Sue, who are both attorneys, agreed to share office space and other overhead expenses to save money. They did not agree to form a partnership. They do not share profits or losses, and neither has a say in the management of the other's business. The sign outside their door, and on their common letterhead, reads: "Bob Smith and Sue Jones, Attorneys at Law." Using this stationary, Bob purchased office equipment from Smart Buy. Sue at no time used the equipment and did not enter into the contract with Smart Buy. Bob did not pay for the equipment and Smart Buy wants to hold Sue liable. Is Sue liable as a partner for this purchase?
Yes, allowing her name to be used with Bob's on the same letterhead created an express partnership.
Yes, allowing her name to be used with Bob's on the same letterhead created an implied partnership.
Yes, allowing her name to be used with Bob's on the same letterhead created a partnership by estoppel.
No, there was no sharing of profits or losses or management rights, so there was no partnership
2. The requirement that a person who wishes to sue show injury is called _______.
venue
jurisdiction
claim preclusion
standing
3. A business may be subject to a warrantless search if which of the following is true?
aIt does business in an arbitrary and capricious way.
There is a complaint by a whistleblower.
It does business in a highly regulated industry.
There is no other way to obtain the evidence.
4. Directors have which fiduciary duties?
a The duty of loyalty only.
b The duty of due care only.
The duty to obey instructions only.
Both duties of loyalty and due care.
5. Under RUPA, partners hold title to real property as ______.
joint tenants
tenants in common
tenants in partnership
tenants by the entireties
aYes, allowing her name to be used with Bob's on the same letterhead created an express partnership.
bYes, allowing her name to be used with Bob's on the same letterhead created an implied partnership.
cYes, allowing her name to be used with Bob's on the same letterhead created a partnership by estoppel.
dNo, there was no sharing of profits or losses or management rights, so there was no partnership
Explanation / Answer
1. Yes, Sue is liable as a partner for this purchase. This is because of allowing her name to be used with Bob's on the same letterhead created a partnership by estoppel. So the correct option is C.
2. The requirement that a person who wishes to sue show injury is called standing. So the correct answer is D.
3. A business may be subject to a warrantless search if it does business in an arbitrary and capricious way. So the correct option is A.
4. Both duties of loyalty and due care are fiduciary duties of the directors. So the correct answer is D.
5. Under RUPA, partners hold title to real property as tenants in partnership. So the correct option is C.
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