1. Allie and Paul are cousins. Allie enters into a contract to sell Paul's car to Max, even though Paul never gave Allie the authority to do so. When Paul learns about the contract, he tells Allie and Max that he has loves his car and has no intention of selling it. Max believes that he is entitled to the car and sues Paul for breaching the contract. Will Max's lawsuit against Paul be successful?

	a.	Yes. Paul must sell the car to Max since Allie and Paul's relationship gave her the apparent authority to act on his behalf.
	b.	Yes.The fact that Allie and Paul are cousins gave her the implied authority to sell his car.
	c.	Yes. Paul must sell the car to Max according to the contract since Allie was his agent.
	d.	No. Max's lawsuit will not be successful since Paul has no obligation to sell his car to Max.

2. Liv, Lani, Lindsay and Brina are all partners in Skateboards Plus. Liv and Lani want to admit Allie as a partner in the business. Liv and Lani can do this even if Lindsay and Brina do not agree. True False

3. Joe and Moe are limited partners in a limited partnership. To avoid personal liability for partnership obligations, they must not

	a.	participate in the firm's management.
	b.	acquire an interest in the firm.
	c.	receive a share of the profits.
	d.	contribute cash or other property to the firm.