Class: Business Law Daniel is the owner of a chain of shoe stores. He hires Ruby
ID: 367774 • Letter: C
Question
Class: Business Law Daniel is the owner of a chain of shoe stores. He hires Rubya to be the manager of a new store, which is to open in Grand Rapids, Michigan. Daniel, by written contract, agrees to pay Rubya a monthly salary and 20 percent of the profits. Without Daniel's knowledge, Rubya represents himself to Classen as Daniel's partner and shows Classen the agreement to share profits. Classen extends credit to Rubya. Rubya defaults
5-Was Rubya's share in profits a means of paying his salary? 1)Yes 2) No
6-Does Rubya's position as manager make him a co-owner of the shoe store? 1) Yes 2) No
7-Is Rubya a partner? 1) Yes 2) No
8-Why? The elements of a partnership ________met. 1) are 2) are not
9-When a nonpartner represents himself to be a partner, a partnership by ______may arise. a) equity b) representation c) emergency d) estoppel
10-A partnership by estoppel allows a________to impose liability on a_______ a) partner b)non Partner c) third person
Explanation / Answer
5. Yes, It was not a partnership deal rather an emploee-employer deal.
6. No. One can have a certain quantity of stock of Amazon as an employee. That doesn't make him a partner.
7. No, She is just an employee with stock option such as ESOP
8. 2. The elements of partnership are not met
9. b. A partnership by representation, as Rubya represented himself as Daniel's partner
10. third person, partner