1) Software Inc. is also having problems. Software Inc. created a software program call Student Notes* that allows students to digitally tape their teacher's lectures in class and instantly create lecture notes. The software was very popular with students but recently another company called Computer Programs Inc. was selling similar software called Student Study Notes which was hurting the sales of Software Inc. Software Inc. contacted Computer Programs Inc. and informed them that they will take legal action if they continue to sell Student Study Notes to the public. Computer Program Inc. responded by claiming they have done nothing wrong and can compete with any software company if they choose. Discuss. (10 Marks)

2) You, the owner of a business, tell your sales agent that he is not authorized to offer discounts to customers. Your agent negotiates a contract with a customer that involves a discount.

a) The custumore cannot assume that your agent has real authority

b) You cannot be bound to the contract because your agent has no real authority

c) All contracts negotiated by your agent are enforceable, regardless whether they have reail authority

d) The contract may be enforceable if the customer is allowed to assume that your agent has real authority

3) An assignment in bankrupcy (voluntary bankrupcy) is

a) an agreement between the debtor and one creditor to continue the business

b) a voluntary transfer of assets to a trustee in bankrupcy by a debtor

c) an arrangement with creditors under the Companies Creditors Arrangement Act

d) a consumer proposal

4) A limited liability partnership (LLP) may be attractive to lawyers and accountants because

a) partners are not liable for negligent acts or omissions of other partners in the firm.

b) all of the other answers are correct

c) it avoids the disadvantage of unlimited liability for all partners

d) they are not legally permitted to form corporations to practice their profession