Fact Pattern 28-1 Ann Starts Up Bowls Bistro to Sell

question 63

Multiple Choice

Fact Pattern 28-1 Ann starts up Bowls Bistro to sell soups and salads. Ann leases space in an office building owned by Carly. The lease requires a base rent of $1,250, plus 10 percent of Bowls Bistro's profits, each month. The term is two years. Ann hires Demi to take and fill customers' orders at an hourly wage of $15.00, plus tips.
Refer to Fact Pattern 28-1. Ann and Carly are

• A) not partners, because Carly does not have an ownership interest or management rights in Bowls Bistro.
• B) not partners, because the lease includes "base rent."
• C) not partners, because the rent includes only 10 percent of the profits.
• D) partners in a partnership for two years.

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Definitions:

Theft

The act of stealing; the wrongful taking and carrying away of the personal property of another with intent to deprive the rightful owner.

Slander

A form of defamation achieved through spoken statements that damage a person's reputation.

Defamatory Statement

A false statement that injures someone's reputation.

Tort

A wrongful act in the civil realm that results in damages or harm to an individual, establishing legal accountability for the one committing the act.