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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Definitions:

Reference Line

A line used in technical drawings or diagrams as a basis for measurement or to denote a base position from which other dimensions or positions are determined.

Arrow

A graphical symbol used to indicate direction or to point towards an object or location.

Weld Joint

The junction or area where two or more metal parts are joined together by welding.

Melt-Through Symbol

A symbol in welding used to denote the requirement for full penetration of the weld, ensuring the weld material extends through the thickness of the parts being joined.