Venardos and Aaberg Agreed to Enter into a Partnership to Farm

question 17

Multiple Choice

Venardos and Aaberg agreed to enter into a partnership to farm kangaroos for their meat and pelts.Aaaberg agreed to pay Venardos $30 000 for a half share in the business.Venardos told Aaaberg that this amount mostly represented the cost of buying the kangaroos.Venardos did not tell Aaaberg that the he had not paid anything for the kangaroos, but had in fact simply saved them from being shot by a farmer who regarded them as a pest on his land and was glad to see them gone.Has Venardos breached any of his fiduciary duties to Aaaberg?

• A)No.The maxim 'caveat emptor' is applicable to the transaction.
• B)Yes.He should not have profited personally from his position as a partner at the expense of Aaaberg.
• C)Yes.Venardos owes Aaaberg a fiduciary duty under the Australian Consumer Law.
• D)No.Venardos has no duty to disclose to Aaaberg information that was gained prior to his entry into the partnership.

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a reduction in per unit cost.

Issuance Size

Refers to the total amount of securities, such as bonds or stocks, that an entity offers to the public for sale.

Venture Capital

Financing for new, often high-risk ventures.

Ownership

The act, state, or right of possessing something.