Which One of the Following Statements Is Correct with Respect

question 121

Multiple Choice

Which one of the following statements is correct with respect to the liability of partners?

• A) When a partner enters into a partnership arrangement, he can only lose what he has invested in that partnership.
• B) If a third party is injured because of an activity carried on by the partnership, that third party can only go after the personal assets of a partner if the assets of the partnership are not enough to provide compensation and the damage was actually caused by the conduct of that partner.
• C) A general partner is responsible, independent of what he has invested, for any losses caused to outsiders through the partnership business if the assets of the partnership are not enough to cover the claim.
• D) If there are three equal partners in a partnership, an injured third party can only collect one third of the claim from any one partner.
• E) A partner can protect himself from any liability beyond his investment if one of the other partners specifically agrees in the partnership agreement to be responsible for all such liability.

Identify circumstances under which a contract may be considered breached or discharged.

Recognize the consequences of failing to perform contractual obligations on time.

Comprehend the impact of unforeseen circumstances on contractual obligations.

Analyze the effectiveness of substituting parties in a contract.

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Definitions:

Preempted

The action of precluding or taking precedence over something, often referring to federal laws that take precedence over state laws in the same domain.

State Law

Legislation that is enacted and enforced by a state's legislative body, governing matters not reserved to the federal government by the Constitution.

Contract Clause

A provision in the U.S. Constitution that prohibits states from passing any law that impairs the obligation of contracts, aiming to protect contractual agreements from state interference.

Minimum Wage Law

Legislation establishing the lowest hourly wage that employers can legally pay their workers.