2019

1.Which of the following statements is not correct?

a. a general partner in a limited partnership manages the business of the partnership but cannot
perform acts of ownership without the consent of all the limited partners.

b.valid contributions of a limited partner are money or property but not services.

c. additional limited partners may be admitted into the limited partnership with the consent of all
partners.

d. a person who is both a genaral partner and limited partner is deemed a limited partner only with
respect to the return of his contribution.

2.The following are the effect of unlawful partnership except:

a. Unlawful parntership has no legal personality.

b.Partners forfeit their share in the profit.

c.Partners forfeit their capital whether or not it becomes an instrument or effect of the crime.

d. Judicial decree is no longer required.

2018

3.Thirteen months ago Harris, Emma's father convinced Emma to sign a contract to further Emma's
tennis career. Under the contract, Harris would be paid an unusually high agent's fee. Emma was 24
years old at the time. To void this contract, Emma's best argument would be based upon.

a. The statute of limitations.

b.The Statute of frauds.

c. Undue influence

d. Duress.

Answer: C

4.Kent corporation, a distributer of fuel oils, placed the following advertisement on it's website:
INTERESTED IN AN EXCITING CAREER? QUALIFIED CPA WILL EARN $200K PLUS! GUARANTEED!!' Johnson
a CPA with 10 years experience in the fuel oil industry e-mailed her application to Kent Corporation. Kent
Corporation:

a. Has not made an offer to Johnson, but has made an offer to the first qualified applicant for the
position.
b. Has made an offer to Johnson is the position is still available when Johnson applies.

c. Has made an offer to Johnson if Johnson is fully qualified.

d. has not made an offer to Johnson.

Answer: D

2017

5.For a contract to be valid, legally sufficient consideration must be bargained for and exchanged. In
which of the following instances is the consideration legally sufficient?

a. a party to the contract acknowledges receipt of consideration whoch was not actually paid.

b. a contract for the sale of patent for $1,000,000 when the patents actual value is about $300,000.

c. a party to a contract for a services agrees to a modified fee because of financial difficulties he is
experiencing.

d. a sheriff's agreement to perform a levy expeditiously in exchange for an additional $20 fee.

Answer: B

6.Young, a license practical nurse, had been unemployed for several months when she was hired for a
thirty day assignment at a rate of pay which was about half her usual contract rate. Young agreed to the
low rate as she was seriously delinquent in paying rent on her apartment. Upon completion of the
assignment, Young demanded to be paid her usual rate. With respect to her claim for additional pay,
Young will:

a. Succeed if she felt under actual duress.

b. Succeed of she proves that the agreed rate was below the custom of the profession.

c. Not succeed even though the value of her services exceeded the agreed upon rate of pay.

d. Not succeed unless the court deems the contract was unilateral.

Answer: C

2016

7.Li, an overworked executive will be travelling to a remote island retreat in order to relax and 'unplug'
for a two week period. This retreat is designed to only allow guests to contact to and from the outside
world in event of emergency, all cellphones and personal electronics are banned. However, Li is in the
midst of finalizing the negotiation of the private sale of a valuable piece of artwork. Li doesn't was to risk
losing the sale, but, due to his work schedule, cannot delay his trip. He wants to grants his sister, shu,
power of attorney to allow her to negotiate and finalize the sale in his absence. Which of the following
statements is false?

a. Li may draft the power of attorney document in order to limit this authority to the particular
transaction in question.

b. Shoe does not need to be an attorney herself to act with Li's authority in the sale, but is required to
have capacity to act as an agent.

c. Only Li is required to sign the power of attorney document to make it valid and binding.

d. In the unfortunate event of Li's death, shu will have the authority to finalize the sale for the benefit of
Li's estate.

Answer: D

2015