BLAW 3430 Engler Final Exam, BLAW
3430 Engler Final Exam, BLAW 3430 Final
Exam Engler, UNT Engler BLAW 3430
Final Ch. 28-35, UNT BLAW 3430 Engler
Final UPDATED Study Guide
QUESTIONS AND CORRECT ANSWERS
Agency - CORRECT ANSWERS a consensual relationship in which one
person (the agent) acts as a representative of, or otherwise acts on behalf of,
another person (the principal) with power to affect the legal rights and duties of
the principal.
common/contract law with a twist
involves three persons: the principal, the agent, and a third person who deals
with the agent
Employer is the principle - CORRECT ANSWERS Employee is the
agent
3 duties principle owes to agent - CORRECT ANSWERS -
Compensation
-Reimbursement
-Indemnification (Insurance)
Each can be excluded or modified
6 Duties as an agent - CORRECT ANSWERS -Obedience
,-Honesty (good conduct)
-Loyalty (Diligence)
-Provide accounting
-Notification (duty to inform)
-Fiduciary
(Agent is also liable for any loss they cause to the principal through any breach
of these duties)
Fiduciary Duty - CORRECT ANSWERS a partnership is the duty of
utmost loyalty, fairness, and good faith owed by partners to each other and to
the partnership and includes duty not to appropriate partnership opportunities,
not to compete, not to have conflicts of interest, and not to reveal confidential
information.
Power of Attorney - CORRECT ANSWERS Agreement where someone
appoints you as agent in attorney in fact
Agencies exist so principals can deal with - CORRECT ANSWERS 3rd
parties
2 areas of concern with 3rd Party relationships - CORRECT ANSWERS
-Tort
-Contract
Respondeat Superior - CORRECT ANSWERS An employer is subject to
vicarious liability for an unauthorized tort committed by his employee, if the
employee committed the tort within the scope of her employment.
Who is liable in each?
,-Undisclosed:
-Partially Disclosed:
-Fully Disclosed: - CORRECT ANSWERS -Undisclosed: Agent is liable
-Partially Disclosed: Agent is liable, but can sue the unidentified principal
-Fully Disclosed: Agent is not liable
Sole Proprietorship - CORRECT ANSWERS -unincorporated business
consisting of one person who owns and completely controls the business.
-Advantages: Ease of start, decision maker, favorable taxation
-Disadvantage: full liability, costly; limited Expertise; dissolves in event of
death
Capital Contribution - CORRECT ANSWERS If you have in
writing/agreement to contrary, partners share equally in profits and losses
Partnership - CORRECT ANSWERS -an association of two or more
persons to carry on as co-owners a business for profit.
-person" to include "individuals, partnerships, corporations, joint ventures,
business trusts, estates, trusts, and any other legal or commercial entity.
What is a co-owner? - CORRECT ANSWERS When you agree to split
profit or losses
General Partnership - CORRECT ANSWERS -unincorporated business
association consisting of two or more persons who co-own a business for profit.
-Each partner has an equal right to control of the partnership
-Advantages: Ease of formation, cheap, twice the expertise; usually death or
bankruptcy does not dissolve it
, -Disadvantages: Unlimited liability plus (meaning that you have your liability
and partner's liability to take care of), limited duration
Four rules of Texas Partnership - CORRECT ANSWERS Absent and
agreement otherwise (contrary):
-Neither partner has right to compensation
-Partners share equally in profits and losses
-Both partners have rights to accounts and books
-Have rights to management
Capital Contribution has nothing to do with - CORRECT ANSWERS
Percentage of ownership unless otherwise written/agreed to it
Unless agreed otherwise partners do not have - CORRECT ANSWERS
Compensation
Partners can be - CORRECT ANSWERS -Silent: one that provides
money and leaves someone to deal with the rest
-Secret: 3rd parties don't know of existence
-Dormant: Both silent and secret
Accounting Lawsuit - CORRECT ANSWERS Asking judge to make a
partner give audits
Ending Partnership - CORRECT ANSWERS -Dissolution: Act or event;
death, withdrawal, incompetence
-Unwinding: liquidation of assets, where all the assets are disposed of
-Termination: Partners don't owe a duty to one another
>Outside creditors are paid first
3430 Engler Final Exam, BLAW 3430 Final
Exam Engler, UNT Engler BLAW 3430
Final Ch. 28-35, UNT BLAW 3430 Engler
Final UPDATED Study Guide
QUESTIONS AND CORRECT ANSWERS
Agency - CORRECT ANSWERS a consensual relationship in which one
person (the agent) acts as a representative of, or otherwise acts on behalf of,
another person (the principal) with power to affect the legal rights and duties of
the principal.
common/contract law with a twist
involves three persons: the principal, the agent, and a third person who deals
with the agent
Employer is the principle - CORRECT ANSWERS Employee is the
agent
3 duties principle owes to agent - CORRECT ANSWERS -
Compensation
-Reimbursement
-Indemnification (Insurance)
Each can be excluded or modified
6 Duties as an agent - CORRECT ANSWERS -Obedience
,-Honesty (good conduct)
-Loyalty (Diligence)
-Provide accounting
-Notification (duty to inform)
-Fiduciary
(Agent is also liable for any loss they cause to the principal through any breach
of these duties)
Fiduciary Duty - CORRECT ANSWERS a partnership is the duty of
utmost loyalty, fairness, and good faith owed by partners to each other and to
the partnership and includes duty not to appropriate partnership opportunities,
not to compete, not to have conflicts of interest, and not to reveal confidential
information.
Power of Attorney - CORRECT ANSWERS Agreement where someone
appoints you as agent in attorney in fact
Agencies exist so principals can deal with - CORRECT ANSWERS 3rd
parties
2 areas of concern with 3rd Party relationships - CORRECT ANSWERS
-Tort
-Contract
Respondeat Superior - CORRECT ANSWERS An employer is subject to
vicarious liability for an unauthorized tort committed by his employee, if the
employee committed the tort within the scope of her employment.
Who is liable in each?
,-Undisclosed:
-Partially Disclosed:
-Fully Disclosed: - CORRECT ANSWERS -Undisclosed: Agent is liable
-Partially Disclosed: Agent is liable, but can sue the unidentified principal
-Fully Disclosed: Agent is not liable
Sole Proprietorship - CORRECT ANSWERS -unincorporated business
consisting of one person who owns and completely controls the business.
-Advantages: Ease of start, decision maker, favorable taxation
-Disadvantage: full liability, costly; limited Expertise; dissolves in event of
death
Capital Contribution - CORRECT ANSWERS If you have in
writing/agreement to contrary, partners share equally in profits and losses
Partnership - CORRECT ANSWERS -an association of two or more
persons to carry on as co-owners a business for profit.
-person" to include "individuals, partnerships, corporations, joint ventures,
business trusts, estates, trusts, and any other legal or commercial entity.
What is a co-owner? - CORRECT ANSWERS When you agree to split
profit or losses
General Partnership - CORRECT ANSWERS -unincorporated business
association consisting of two or more persons who co-own a business for profit.
-Each partner has an equal right to control of the partnership
-Advantages: Ease of formation, cheap, twice the expertise; usually death or
bankruptcy does not dissolve it
, -Disadvantages: Unlimited liability plus (meaning that you have your liability
and partner's liability to take care of), limited duration
Four rules of Texas Partnership - CORRECT ANSWERS Absent and
agreement otherwise (contrary):
-Neither partner has right to compensation
-Partners share equally in profits and losses
-Both partners have rights to accounts and books
-Have rights to management
Capital Contribution has nothing to do with - CORRECT ANSWERS
Percentage of ownership unless otherwise written/agreed to it
Unless agreed otherwise partners do not have - CORRECT ANSWERS
Compensation
Partners can be - CORRECT ANSWERS -Silent: one that provides
money and leaves someone to deal with the rest
-Secret: 3rd parties don't know of existence
-Dormant: Both silent and secret
Accounting Lawsuit - CORRECT ANSWERS Asking judge to make a
partner give audits
Ending Partnership - CORRECT ANSWERS -Dissolution: Act or event;
death, withdrawal, incompetence
-Unwinding: liquidation of assets, where all the assets are disposed of
-Termination: Partners don't owe a duty to one another
>Outside creditors are paid first
