Joe and Sam Were in Business School Together

question 18

Multiple Choice

Joe and Sam were in business school together. After they graduated, they decided to open an ice-cream store in a mall together. They had skipped the classes where they were taught about different methods and forms of carrying on business and so gave no thought as to how they would structure their relationship. Which of the following is true with respect to the legal positions of Joe and Sam?

• A) Sam and Joe are not in a partnership since they have not specifically agreed to be.
• B) If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, he must share any profits he makes with Joe.
• C) If Sam were to find a great deal on anchovy ice-cream and purchased 2000 litres of it, only Sam would be liable for the debt incurred as a result of the purchase.
• D) If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, Joe would be liable for any losses he suffered along with Sam.
• E) If a customer were injured because of poorly kept food and Sam did not have the assets to pay his half, Joe would only have to pay for his half of the damages suffered.

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Definitions:

No Solicitation Policies

Company policies that restrict or prohibit employees and outside entities from soliciting or distributing materials within the workplace.

Discriminatory Enforcement

Discriminatory enforcement involves applying rules, laws, or policies in a biased or unequal manner, often targeting specific groups unfairly.

Free Choice

The freedom of individuals to make decisions or actions without coercion or constraint from external entities, often seen in contexts like voting, employment, and consumer behavior.

Unfair Labor Practice

Actions by employers or unions that violate workers' rights or the rules governing labor relations.