[Language-Science Kits] the President of Kool Science, Inc

question 10

Multiple Choice

[Language-Science Kits] The president of Kool Science, Inc., which makes educational science kits for children, calls the president of Language Fun, Inc., which makes foreign language learning materials for children. They discuss production of three educational toys which teach both science and foreign language to children. They agree that Kool will work with Language to create and market the three toys, and that they will use Kool's manufacturer to produce the product.
-The president of Kool Science wants to draw up a written contract because it is unclear what type of law will be applied if there are problems. However, the president of Language Fun states that, although it is always a good idea to have a written contract, it is not necessary because partnership law will be applied if there are problems. Who is correct?

• A) Kool Science's president is correct because a formal agreement is required for a joint venture.
• B) Kool Science's president is correct because courts will not know what type of law to apply without an express written provision in a contract.
• C) Language Fun's president is correct because a joint venture may be formed without drawing up a formal agreement since the parties are required to file a certificate of joint venture with the state.
• D) Language Fun's president is correct because a joint venture may be formed without drawing up a formal agreement, and courts frequently apply partnership law to joint ventures.
• E) Neither person is correct.

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Definitions:

Structure

The arrangement or organization of something, especially as it pertains to the arrangement of atoms in chemical compounds or the assembly of components in physical objects.

Boiling Point

The point at which the vapor pressure of a liquid matches the ambient pressure, leading to its transition into a gaseous state.

Compounds

Substances formed from the chemical combination of two or more elements, with a fixed ratio determining the composition.

Tertiary Amine

An amine in which the nitrogen atom is connected to three alkyl or aryl groups.