LAW 531 Week 1 Knowledge Check Essay Example for Free

LAW 531 Week 1 Knowledge Check EssayWhich of the following is true of a locoweed? stack owners argon wholly taxed once on earnings.A corporation terminates upon the death of an owner.A corporation is a separate legal entity.Corporation shareholders are subject to un contain personal liability.Correct2There are two general collaborationists, each of whom contri andes $5,000 in capital to a particular partnership. There are two contain partners, each of whom contributes $20,000. The total amount of capital contributed is $50,000. The limited partnership agreement does non stipulate how profits and losses areto be allocated. Assume that the limited partnership makes $300,000 in profits. Under the Revised Uniform Limited Partnership Act (RULPA), how much would each partner rule?Each general partner would receive $30,000, and each limited partner would receive $120,000. Each general partner would receive $50,000, and each limited partner would receive $100,000.https//newclassroom 3.phoenix.edu/Quiz/Quiz.jsp?launchPresentationRRIS43590667serverTime=2013-08-20T042356.746+0000/view/ prove page 1 of 68/19/13 924 PMStart OverAll partners would receive $75,000, regardless of whether he or she is a general or limited partner.Each general partner would receive $120,000, and each limited partner would receive $30,000.Correct3Which of the following is true regarding mediation?A mediator does not make a stopping point or an award.If a settlement agreement is not reached in mediation, consequently the parties hire a new mediator.Was created by the Federal Mediation Act of 1925.A settlement agreement is never reached with a mediator.Correct4George has served Mary with a complaint alleging breach of contract. Mary has never been sued before and as such, she seeks your advice on what to do with the complaint. You advise that sheanswer Georges complaint but do not provide whatever affirmative defenses that George bottom use against heranswer Georges complaint by admitti ng or denying the allegations George has asserted against her write a letter to the judge saying that George is mistakenshould not respond to Georges complaint as an answer implies an admissionCorrect5Which of the following is true of arbitration?A judicial referee makes recommendations to the parties.One party usually drops the case.Parties can kick off evidence to support their case.A resolution may or may not be reached.Correcthttps//newclassroom3.phoenix.edu/Quiz/Quiz.jsp?launchPresentationRRIS43590667serverTime=2013-08-20T042356.746+0000/view/resultPage 2 of 68/19/13 924 PM6Which of the following is one of the major purposes of a settlement congregation?To conduct discovery for a caseTo contest the local court rulesTo facilitate the settlement of a caseTo structure a settlement pay scheduleCorrect7What is the effect of having a corporation as the general partner of a limited partnership?Each shareholder of the corporation will be treated as a limited partner of the limited pa rtnership.The liability of the corporate general partner will be limited to the amount of its assets.The limited liability of the corporation will result in the limited partners having greater liability than they would otherwise.Each shareholder of the corporation will be treated as a general partner of the limited partnership.Correct8Which of the following is true about the prime(prenominal) of business entity for an entrepreneur?The cream is determined by the Internal Revenue Service based on all the facts and circumstances.The choice takes into account many factors, including finding an option that has all the characteristics desired.The choice is determined solely by whether the primary business is services or goods. The choice is determined solely by the amount of capital invested.Correct9Which form of alternative dispute resolution occurs when the parties choose an impartial third party to hear and decide their dispute?https//newclassroom3.phoenix.edu/Quiz/Quiz.jsp?launchPre sentationRRIS43590667serverTime=2013-08-20T042356.746+0000/view/resultPage 3 of 68/19/13 924 PMMinitrialArbitrationConciliationMediationCorrect10Fred and gingery are general partners in a business. They decide to purchase a building for the partnership. pep will put up the money for the building, and Fred will fatten the remodeling. While inspecting the building, Fred is informed that the building is packed full of asbestos. He fails to tell Ginger of the presence of the substance. They buy the building and go into business. During the remodeling of the building, people from the neighborhood experience complaining about the dust from the building. Some of them even threaten to sue. Who is liable?Fred is liable because he was put on notice of the presence of the substance. Ginger is not liable because she did not have actual knowledge.Neither Ginger nor Fred are liable personally, nor is the partnership, as they did not put the substance in the building.Both Ginger and Fred are l iable, regardless of the circumstances, by virtue of the fact that they are partners.Ginger is liable because she is the one who purchased the building. Fred is not liable, even though he had actual knowledge, because he did not purchase the building.Correct11Martha started a flower pasture as a sole proprietor. After 1 year, she was forced to close the shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true?Marthas business creditors can collect only the $50,000 of business assets.Once Martha terminates the sole proprietorship, she is no longer liable for the $50,000.Marthas business creditors can collect only the $50,000 now, but if Martha ever goes into business again, they can get the assets of the new business.Martha is personally liable for the additional $75,000 owed to business creditors.Correcthttps//newclassroom3.phoenix.edu/Quiz/Quiz.jsp?launchPresentatio nRRIS43590667serverTime=2013-08-20T042356.746+0000/view/resultPage 4 of 68/19/13 924 PM12Which type of business formation is typically reserved for professionals such as accountants, lawyers, and doctors?Limited liability Company (LLC)Limited Liability Partnership (LLP)FranchiseS-CorporationCorrect13Which of the following is true in the creation of a general partnership?The raise selected cannot indicate that it is a corporation.The business holler must have the names of all the partners.The business cannot operate under a trade name.The business name cannot be a fictitious name.Correct14Which of the following is true of The Federal Arbitration Act?It permits an appeal for all arbitration awards.It provides that arbitration agreements are valid, irrevocable, and enforceable.It applies only to breach of contract disputes.It governs all types of alternative dispute resolution.Correct15When parties agree in advance to adhere to an arbitrators decisiveness and award, it is known asbi nding arbitrationhttps//newclassroom3.phoenix.edu/Quiz/Quiz.jsp?launchPresentationRRIS43590667serverTime=2013-08-20T042356.746+0000/view/resultPage 5 of 68/19/13 924 PMarbitrator discretionappealablemediationCorrect16The Black Squirrel limited partnership has been in operation for many years, but has recently fallen on hard times. The partners have decided to dissolve, although there are a couple of(prenominal) assets remaining in the partnership. Shortly after the partnership filed its security system of limited partnership, the partners had the foresight to incorporate into their partnership agreement a provision that, in the event of dissolution, the assets would be distributed in payment of claims first to limited partners, then to general partners, then to creditors.Hilda is a limited partner and feels relieved that she will receive at least a portion of her capital. Henry, one of the general partners, express that this provision is void and unenforceable. Which of the follo wing best describes this situation?The provision placing limited partners ahead of general partners is unenforceable, thus all partners would be on an equal land and ahead of creditors.The provision placing the partners ahead of creditors is not enforceable, but the priority of limited partners over general partners is enforceable.The distribution of assets in the event of dissolution is one of the few provisions where the Revised Uniform Limited Partnership Act does not allow modification.The distribution, as called for in the agreement, would be enforceable if it had been included in any filings related to the limited partnership.Incorrecthttps//newclassroom3.phoenix.edu/Quiz/Quiz.jsp?launchPresentationRRIS43590667serverTime=2013-08-20T042356.746+0000/view/result