LAW 531 Week 1 Knowledge Check

1374 Words6 Pages
8/19/13 9:24 PM

Questions
1. Correct
2. Correct
3. Correct
4. Correct
5. Correct
6. Correct
7. Correct
8. Correct
9. Correct
10. Correct
11. Correct
12. Correct
13. Correct
14. Correct
15. Correct
16. Incorrect
Your answers : 15/16 (94%) Submitted on Aug 19, 2013, 9:23 PM
1
Which of the following is true of a corporation?

Corporation owners are only taxed once on earnings.
A corporation terminates upon the death of an owner.

A corporation is a separate legal entity.

Corporation shareholders are subject to unlimited personal liability.

Correct
2
There are two general partners, each of whom contributes $5,000 in capital to a limited partnership. There are two limited partners, each of whom contributes
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The choice is determined solely by the amount of capital invested.

Correct
9
Which form of alternative dispute resolution occurs when the parties choose an impartial third party to hear and decide their dispute?

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8/19/13 9:24 PM

Minitrial
Arbitration

Conciliation

Mediation

Correct
10
Fred and Ginger are general partners in a business. They decide to purchase a building for the partnership. Ginger will put up the money for the building, and Fred will complete the remodeling. While inspecting the building, Fred is informed that the building is packed full of asbestos. He fails to tell Ginger of the presence of the substance. They buy the building and go into business. During the remodeling of the building, people from the neighborhood begin complaining about the dust from the building. Some of them even threaten to sue. Who is liable?

Fred is liable because he was put on notice of the presence of the substance. Ginger is not liable because she did not have actual knowledge.
Neither Ginger nor Fred are liable personally, nor is the partnership, as they did not put the substance in the building. Both Ginger and Fred are liable, regardless of the circumstances, by virtue of the fact that they are partners.

Ginger is liable because she is

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