Answer the following true or false

Jones, Smith and Doe form the Redmen Corporation (a business corporation) for the purpose of operating a retail book store.They are its only shareholders.

True or false The corporation will have to pay income taxes on profits, unless special tax treatment is elected.

True or falseNo legal filings were needed for the formation of Redmen Corporation.

True or false As shareholders, Jones, Smith and Doe are personally liable for debts of the corporation.

True or false As shareholders Jones, Smith and Doe are required to elect a Board of Directors that would have authority over management.

True or false Jones and Smith are personally liable for torts committed by Doe while Doe is transacting corporate business.

True or false If Jones, Smith and Doe were all to die in a plane crash, Redmen Corporation would cease to exist.

Jones, Smith and Doe form an entity called Hardcover, L.L.C. for the purpose of operating a retail book store.Hardcover, L.L.C. does not have an Operating Agreement.

True or false Jones, Smith, and Doe have created an entity called a limited partnership.

True or falseJones, Smith, and Doe are legally referred to as "members" of Hardcover, L.L.C.

True or false The formation of Hardcover, L.L.C. required filing of certain documents with the government.

True or falseSmith is personally liable to creditors for all debts of Hardcover, L.L.C.

True or falseHardcover, L.L.C. ceases to exist if Jones retires.

Jones, Smith and Doe form the XYZ general partnership for the purpose of operating a retail book store.There is no relevant partnership agreement addressing the issues presented.

True or false Business profits, if any, must be shared equally by Jones, Smith, and Doe.

True or falseThe XYZ partnership must pay income taxes before any partner may receive his/her share of profits.

True or false Each partner has an equal vote in ordinary business management decisions.

True or false Each partner is fully liable to creditors for all debts deriving from partnership business.

True or false Jones and Smith are liable for negligence committed by Doe while Doe is transacting partnership business.

Martha started a flower shop as a sole proprietor.After one year, she was forced to permanently close the shop because business was so bad.At that time, the business assets totaled $50,000, but the business debts totaled $125,000.

True or falseMartha is personally liable for the additional $75,000.

True or falseMartha's business creditors are permitted to collect only $50,000 in this case.

True or false Once Martha closes the flower shop, the business creditors are not permitted to collect any money.

In each of the following situations determine whether or not there has been a breach of a fiduciary duty by a partner of the X-Y-Z partnership.

True or false Partner X secretly owns certain land that he put in his sister's (married) name, and he becomes aware that his partners want the partnership to buy that very land for its business.Partner X has his sister sell the land to the X-Y-Z partnership without disclosing that he (Partner X) is the actual owner of the land.The land is sold at a fair price.

Ture or false Partner Y is offered a chance to earn some money performing a service, which either Y personally or his partnership could perform.Y accepts the offer personally without first offering it to his partnership.

True or false Partner Z personally opens up a competing store down the street from one owned by the partnership without getting permission from his partnership.

True or false Partner Y sells partnership merchandise for more than the usual partnership selling price and keeps half of the excess profits for himself.

True or false Partner Z uses the partnership truck for personal purposes after receiving permission from the other partners to do so.

Abe is an associate attorney (employee) with that famous Denver law firm, Dewey, Cheatem & Howe.One Thursday, Abe must go to western Colorado for a client's deposition.The deposition is unexpectedly over in mid-morning and Abe starts driving back to Denver.As he approaches Vail, Abe remembers that the partners are in Aspen for two days.Abe says to himself, "If they're in Aspen, that means they're not in the office in Denver.I hear the slopes calling for a half day of skiing."Abe pulls off of I-70 and is skiing by 1:00 p.m.By chance, Abe runs into a client from Denver named Gabe, and they ski together and discuss the client's latest legal matters.As Abe is skiing with Gabe, they both ski through a beginner ski lesson group as the beginner students practice their snowplow technique.Abe negligently injures one skier and Gabe separately negligently injures a different skier.

True or false Abe is liable to his victim.

True or false Gabe is liable to his victim.

True or false The law firm is liable to Abe's victim if Abe was in the scope of employment at the time of the incident.

True or false The law firm is liable to Gabe's victim.

True or false Abe is liable to Gabe's victim.

True or false Gabe is liable to Abe's victim.