Which One of the Following Statements Is Correct with Respect

question 11

Multiple Choice

Which one of the following statements is correct with respect to the law of partnership?

• A) Every partner is responsible for every contract entered into by his partner.
• B) Partners are only responsible for contracts entered into by their partnership if the third party knew that the person they were dealing with was a partner in the partnership.
• C) Partners are responsible for any contracts entered into by their partners related to the partnership business.
• D) A partner is responsible for contracts with third parties entered into by their partners only where it has been clearly stated by the partner to the third party that he is entering the contract on behalf of the partnership.
• E) Partners cannot bind their partners in contract without specific written authority.

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Definitions:

Constitutionality

The conformity or alignment of laws, actions, or decrees with the principles or provisions of a constitution.

Whiskey Tax

A tax imposed on distilled spirits, notably whiskey, historically significant for inciting the Whiskey Rebellion in the United States in the late 18th century.

Pinckney Treaty

A 1795 agreement between the United States and Spain that defined the borders of the United States with Spanish colonies and granted the U.S. the right to navigate the Mississippi River.

Second Great Awakening

A Protestant religious revival movement in the early 19th century United States, which spurred the growth of social reform movements, such as abolitionism and temperance.