Class: Business Law Daniel is the owner of a chain of shoe stores. He hires Ruby
ID: 367776 • 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. fill in the blanks with options below the question
11-Did Rubya represent himself to be a partner? a)Yes b)No
12-Did Classen, reasonably and detrimentally rely on Rubya's representation that he was a partner with Daniel? a) Yes b) No
13-Why? To create a partnership by estoppel the ________ must have led the third person to believe the nonpartner was a partner or impliedly consented to the nonpartner representing himself as a partner. a) partner b) non partner
14-In this case________did not represent to Classen that___________ was a partner. a) Daniel b) Rubya
15-What if Daniel had represented to Classen that Rubya was his partner? The courts may find that a ______________was created. a) Patnership b) Paternship by estoppel
Explanation / Answer
11. Yes. His act of showing the profit sharing documents proves that.
12. Yes. This is proved by the fact that he extended credit to Rubya.
13. b. non partner.
14. Daniel, Rubya
15. b. Partnership by estoppel