Which One of the Following Statements Is Correct with Respect

question 11

Multiple Choice

Which one of the following statements is correct with respect to the law of partnership?

• A) Every partner is responsible for every contract entered into by his partner.
• B) Partners are only responsible for contracts entered into by their partnership if the third party knew that the person they were dealing with was a partner in the partnership.
• C) Partners are responsible for any contracts entered into by their partners related to the partnership business.
• D) A partner is responsible for contracts with third parties entered into by their partners only where it has been clearly stated by the partner to the third party that he is entering the contract on behalf of the partnership.
• E) Partners cannot bind their partners in contract without specific written authority.

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Definitions:

Consumer Financial Protection Bureau

A U.S. government agency aimed at ensuring consumer protection in the financial sector and enforcing laws related to financial products and services.

Legislative Approval

The formal consent given by a legislative body to enact a proposed piece of legislation into law.

ARMs

Adjustable-Rate Mortgages, which are loans with interest rates that change over time based on market conditions.

Regulation

The act of controlling, governing, or directing according to rules, principles, or laws, usually by a government or regulatory body.