Question

26.Which of the following are duties that partners owe the partnership? Select all that apply.

	A.	Duty of kindness.
	B.	Duty of loyalty
	C.	Duty of mainenance.
	D.	Duty of faith and fair dealing.
	E.	Duty of non-competition.
	F.	Duty of sound business judgment.
	G.	Duty to inform.
	H.	Call of duty.

27.Select the best answer to complete the following phrase:

Partnership property is owned by

	A.	the partnership itself.
	B.	all partners equally.
	C.	the individual partner who provided the funds for the purchase of the property.
	D.	the individual partner who carried out the transaction to purchase the property.

28.Select the phrase that best completes the following.

A partner may sell the partner's share in a partnership

	A.	at any time.
	B.	at no time, and an attempt to do so will cause dissolution of the partnership.
	C.	only with the approval of a majority of the other partners.
	D.	only with the unanimous consent of all the other partners.

29. From the following select the statements that are true concerning joint ventures.

	A.	Joint ventures are formed by the filing of articles of joint venture with the secretary of state.
	B.	Joint ventures are taxed at the entity level, that is, the joint venture is treated as a taxable entity.
	C.	A joint venture is a partnership for a limited purpose.
	D.	Tax attributes of joint ventures pass through to the joint venture participants.
	E.	As with partnerships, a joint venture may only be formed through the execution and delivery of a written agreement.
	F.	Liability of the joint venture passes through and is shared among the joint venture participants.

30.Select the most accurate summary of the holding in the AZTE, Inc. v. Auto Collection, Inc. case.

		A. piercing the corporate veil and holding Steven Lever individually for the judgments against Auto Collection was an appropriate equitable remedy where there was substantial evidence that Steven Lever commingled funds, did not treat Auto Collection as The liability of Auto Collection to AZTE and the other plaintiffs was personal to Steven Lever because Lever treated Auto Collection a separate entity, and used the company as his alter ego.
	B.	Given that both AZTE and Auto Collection were merchants, AZTE should have been on notice concerning the risk associated with engaging in business with Auto Collection.
	C.	Although Steven Lever's conduct was less than perfect, piercing the corporate veil and holding Steven Lever individually for the judgments against Auto Collection was not appropriate equitable remedy. AZTE was free to seek a judgment against Auto Collection, however.
D.		Although the business of Auto Collection ultimately failed, Steven Lever's decisions in connection with Auto Collection were protected by the business judgment rule. He should not be held personally liable for the results of those decisions.

Answer 1

Answer 26. D. Duty of faith and fair dealing

E. Duty of non competition

F. Duty of sound business judgement

G. Duty to inform

H. Call of duty

Answer 27. the partnership itself.

Answer 28. Only with the approval of the majority of the other partners.

Answer 29. A joint venture is a partnership for a limited purpose.

Answer 30. Given that both AZTE and Auto Collection were merchants, AZTE should have been on notice concerning the risk associated with engaging in business with Auto Collection.