SHORT QUIZ AUSTRALIAN LAW
QUESTION 1

1. The liability of members of a partnership in contract is several.

    True

    False

1 points   

 

QUESTION 2

1. Which of the following circumstances is an accurate description of a joint venture?

   Adam and Bruce own land together; Adam owns two-thirds and Bruce owns one-third.

   Adam and Bruce carry on a restaurant business together.

   Adam and Bruce have agreed to stage a play together and have agreed to share gross returns but not to share liability.

   Adam and Bruce own land together in equal parts, their interests were created at the same time, and they have agreed that if either dies the other person will automatically receive their share.

1 points   

 

QUESTION 3

1. Which of the following is an example of an agent that is appointed by express appointment?

   Peter appoints Adam under a written contract to carry out a particular transaction on his behalf.

   Peter retrospectively affirms or ratifies the authority of Adam.

   Adam is entrusted with Peter's property and finds it necessary to do something with it in order to preserve it.

   Adam and Peter become partners in a partnership.

1 points   

 

QUESTION 4

1. Partnership law is wholly contained in:

   A.  The Partnership Act of the relevant jurisdiction.

   B.  The common law and equity.

   C.  The Corporations Act 2001 (Cth).

   D.       A combination of A and B.

1 points   

 

QUESTION 5

1. In order to be a partnership, the business must be operated by, or on behalf of, all the partners, but it is not necessary for all the partners to take an active part in the day-to-day running of the business

    True

    False

1 points   

 

QUESTION 6

1. Which of the following is the best description of express actual authority?

   Authority is inferred from the conduct of the parties.

   Authority is conferred by the principal either verbally or in writing.

   The principal creates the appearance of an agency by words or conduct that in reality does not exist.

   None of the above.

1 points   

 

QUESTION 7

1. Which of the following activities do NOT fall within the implied authority of a partner to act on behalf of the other partners?

   Employing suitable staff

   Inviting others to join the partnership

   Receiving payments and giving receipts

   Purchasing goods usually used by the firm

1 points   

 

QUESTION 8

1. In Panorama Developments (Guildford) Ltd v Fidelis Furnishings Fabrics [1971] 3 WLR 440 the court decided that the agent did not have apparent authority to bind the principal to the contract with the third party? 

    True

    False

1 points   

 

QUESTION 9

1. Sharing of profits and losses is the only proof of partnership.

    True

    False

1 points   

 

QUESTION 10

1. A limited partnership must include at least one general partner who will have unlimited liability for all debts and obligations of the partnership. True 
    False

1 points   

 

QUESTION 11

1. A relationship can be declared by the court to be a partnership even though this is contrary to the intentions of the parties. 

    True

    False

1 points   

 

QUESTION 12

1. Which of the following is NOT one of the requirements which must be satisfied in order to establish the existence of a partnership?

   The partnership must be registered with ASIC.

   The partners must intend to make a profit.

   The business must be carried on by or on behalf of all the partners in an agency relationship.

   The partners must be carrying on a business.

1 points   

 

QUESTION 13

1. Partnership legislation has effectively replaced the common law and equitable rules relating to partnerships. True 
    False

1 points   

 

QUESTION 14

1. What is the liability of a 'Limited' partner?

   Limited partners are liable for the debts of the partnership beyond their capital contribution.

   Limited partners have no liability for the debts of the partnership.

   Limited partners are not liable for the debts of the partnership beyond their agreed capital contribution.

   Limited partners have unlimited liability for the debts of the partnership.

1 points   

 

QUESTION 15

1. Conducting an isolated transaction together suggests a joint venture rather than a partnership.

    True

    False