Question

BUSINESS LAW 1 (3 Questions)

16 . Abby and Bob bought a small single - family home as tenants in common.

They had a falling out and now hate each other. They do not want to live

in the same house together but can’t agree on a method for one to buy

out the other’s interest. Abby asks for you advice. What can Abby do?

a) she can bring an action against Bob for waste

b) she can an action against Bob for partition

c) she can bring an eviction action against Bob

d) Unfortunately, there is nothing she can do ____

17 . The owners hip interest in a business entity is called:

a) book value

b) equity

c) retained earnings

d) dividend ____

18 . Liability without legal fault is called:

a) intentional liability

b) strict liability

c) res ipsa loquitor

d) negligence per se ____

Answer 1

16. she can bring an action against Bob for partition.

The ordinary divorce rules wont be applicable to unmarried partners. They also cannot take advantage of tax-free transfers available to spouses of buying out a partner’s interest in the house. If Abby and Bob cannot reach on a mutual agreement, alternatives such as partition can be suggested.

17. Equity

An equity interest is defined as the ownership interest in a business. It comes from the concept of equity as ownership.

18. strict liability

strict liability is the imposition of liability without a legal fault. The claimant only needs to prove that the tort occurred because of the defendant.

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