Which of the Following Statements Is False Regarding the Treatment

question 61

Multiple Choice

Which of the following statements is false regarding the treatment of a partnership as a legal entity?

• A) A partnership is often considered a legal entity when it is sued or being sued.
• B) State law determines whether a partnership can or cannot be named in litigation.
• C) Title to property can be put in the partnership name.
• D) Every partner is considered an agent of the partnership, but not every partner has a fiduciary duty to all other partners.
• E) Under the doctrine of marshaling assets, partnership assets are arranged in a certain order to pay any outstanding debts.

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Definitions:

Adhesion Contract

A standardized contract drafted by one party (usually a business) with stronger bargaining power and presented on a "take it or leave it" basis to the other party.

Take-It-Or-Leave-It

A term describing an offer that cannot be negotiated and must either be accepted as is or rejected.

Usurious Loan

A loan given with illegally high-interest rates.

Legal Effect

The legal consequence or outcome that arises from the execution of a law, contract, agreement, or judicial decision.