1. Mike and Phil are Phil are partners in a general partnership. Phil signs numerous contracts on behalf of the partnership with local businesses valued at almost $500,000 dollars. Phil “skips town” to Peru. What is Mike liable for?
A. Nothing. As a general partner, his exposure to liability is limited to the amount of his original investment only.
B. Mike is responsible for the contracts he personally signed, but not those signed by Phil.
C. Everything.
D. None of the above.
E. Reasonable damages, but only if Mike and Phil are “merchants” as defined by the UCC.
2. When are “lost profits” (aka “benefit of the bargain damages) appropriate?
A. When cover-type damages are not adequate to compensate the other party.
B. Lost profit damages are automatically awarded in cases of intentional breech.
C. Are normally awarded at the discretion of the jury.
D. All of the above are correct.
E. None of the above are correct.
3. Jill is a shareholder of General Motors Corporation. As shareholder, Jill’s rights include all of the following except:
A. Sell a corporate asset such as car manufacturing factory.
B. Inspect corporate records and books.
C. Transfer/sell her shares to others.
D. One vote per share.
E. none of the above.