Nora Has Entered into a Joint Venture with Scott to Sell

question 3

Multiple Choice

Nora has entered into a joint venture with Scott to sell diet supplements. They have set up a corporation to carry on the business. They are the sole shareholders and directors. Nora is the president. Which of the following are TRUE?

• A) Nora can only bind the corporation to contracts that Scott has expressly consented to.
• B) Nora is not an agent of the joint venture because the participants in a joint venture cannot be agents.
• C) Nora is liable as a principal for all obligations of the joint venture business.
• D) Nora is an agent of the joint venture with the authority which would be usual for a president to have.
• E) Nora can only bind the corporation to contracts that are within her actual authority.

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