Business Law

True/False Questions:

1.Joan Davis and William Marclay, owners of multi-million dollar businesses agree to join together as a partnership. Due to the size of the partnership, the contract forming the partnership must be in writing.

2.Deeply in debt, Edwin Larsen assigned all of his interest in the partnership of which he was a member to Ernie Lacosse. This act will result in the end of the partnership.

3.Jacob Jones and Denise Roberts are both real estate agents. Whenever they are a part of the same sale of property, they will share the commission.They are agents.

4.Kean and Bubnick are real estate agents who share commissions on joint sales. This sharing of gross returns establishes a partnership unless Kean and Bubnick have a written agreement to the contrary.

5.Drew is a member of a partnership that sells petroleum drilling equipment. The partnership has a policy of not extending credit to customers in excess of $20,000 without the approval of three partners.Drew, on his own, extended credit to a good customer in the amount of $30,000.Drew will be personally responsible for the loan.

6.Bill, Dana, and Carol are partners. After five years of operation, the partnership has debts of $4,500,000.Bill and Dana have no assets.If Carol has personal funds in excess of $4,500,000, she will be completely responsible for the debts of the partnership.