The President of Kool Science Wants to Draw Up a Written

question 17

Multiple Choice

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)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.
• B)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.
• C)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.
• D)Kool Science's president is correct because a formal agreement is required for a joint venture.
• E)Neither person is correct.

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Definitions:

Board of Directors

A group of individuals elected to represent shareholders and make decisions on major company issues, including corporate policies and strategic goals.

Non-Competing

Pertaining to elements or entities that do not engage in competition against each other, either within markets or sports.

Globalization

The method through which companies or various organizations gain international impact or begin to function globally.

Less Developed Countries

Nations with low levels of economic resources, industrial base, and development.