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:

Availability Bias

A cognitive bias that influences people to overestimate the importance of information that is readily available to them, often leading to skewed perceptions and judgments.

Anchoring Bias

A cognitive bias where individuals rely too heavily on an initial piece of information to make subsequent judgments or decisions.

Confirmation Error

A cognitive bias that involves focusing on information that confirms existing beliefs and ignoring information that contradicts them.

Ethics Double-check

A review process designed to ensure that actions or decisions align with moral and professional standards of conduct.