11) Which statement is correct with respect to the function of our court system?

A) A jury can only be used in a criminal matter.

B) The court must be satisfied that it was more probable that the accused committed the crime than not.

C) A victim is the plaintiff in a criminal matter.

D) The victim of the crime is the one who prosecutes the action in the court.

E) The court must be satisfied that the plaintiff's position is correct on the balance of probabilities.

12) Which one of the following statements with regard to the characteristics of civil and criminal actions is true?

A) The prosecutor must prove his case based "upon a balance of probabilities."

B) If a person is convicted of a criminal offence, he cannot also be sued in a civil action by the victim.

C) In a civil action, a person or persons sue another or others usually for the purpose of being compensated for injury or loss suffered.

D) In a criminal case, an individual person is taking the action against the accused.

E) The person who begins a civil action is usually called the "prosecutor."

13) Which of the following is an example of an agent's breach of fiduciary duty to his principal?

A) An agent for the vendor makes a profit on the transaction he negotiates for his vendor above his commission and doesn't tell his principal/vendor.

B) The agent takes presents from the third party and passes them on to the principal.

C) An agent discloses to his principal/vendor that he is giving some of his commission to the purchaser to induce the purchaser to sign the contract that the principal/vendor wants.

D) An agent negotiates a higher price than the highest sale price reasonably possible at that time.

E) An agent for the vendor collects a commission from the purchaser but told his principal and obtained his consent.

14) Grant got a job with Ace Computers Co. (Ace) as a salesman. He was given a course in salesmanship by Ace, business cards, and several of the company's order forms and brochures, and he was assigned an area in which to sell computers door-to-door on behalf of Ace. Grant would be paid on a commission basis. At his first house, he was so excited by the interest shown that he forgot the explicit instructions he had receivedonly cash sales permitted. As agent for Ace, he sold a computer to a Janet. She was to pay $25 per month for eight years because that was all she could afford. When Brown, sales manager of Ace, heard of the deal, he fired Grant and said he would not go through with the contract. However, Janet liked the computer very much and insisted that Ace provide her with one within the week as required by the contract. Which of the following accurately describes the legal position of the parties?

A) Grant had implied authority to sell computers on credit; selling computers necessitates selling on credit, despite the prohibition.

B) Ace would not be bound because Grant failed to follow the exact instructions he had received.

C) Ace is not bound by the contract because no representations of authority were made by it to Janet.

D) Brown is personally liable to Janet because he is the employee of the company who decided not to honour the contract.

E) Ace would be bound because the agent Grant acted within his apparent authority.

15) Which of the following is correct with respect to the ratification of an agent's contracts?

A) A principal can only ratify an agreement entered into by an agent if his name has not been used.

B) The agent can set a time limit within which the ratification must take place.

C) When a contract entered into by an agent is ratified by a principal, it commences at the time the principal ratifies the contract.

D) A principal can ratify a contract where the agent has gone beyond both his actual and apparent authority.

E) A contract can only be ratified if the principal was not able to enter into the contract himself at the time of ratification.

16) Which one of the following statements is correct with respect to sole proprietorships?

A) The sole proprietor need not adhere to any licensing and government regulations.

B) The sole proprietor is responsible for the torts committed by an employee that take place during the course of business.

C) The sole proprietor has the same extent of liability as a shareholder.

D) The sole proprietor has limited liability.

E) The sole proprietor must consult with the other owners before making any major decisions regarding the business.

17) Which one of the following is correct with respect to the rights of partners unless they have agreed otherwise?

A) All profits are shared equally between the partners.

B) Only the partners that have contributed the largest capital amount have the right to share in management.

C) Partners can sell their share of the partnership to another person without the agreement of the partners.

D) Personal expenses incurred by the partners in the course of business are reimbursed.

E) No major decision can be taken without a majority vote agreement of all the partners.

18) With regard to liability of partners, which of the following is true?

A) A general partner could not be liable for losses suffered by a client because of misapplication of funds unless he knew about or took part in the misapplication.

B) The partnership, and thus the partners, are liable for any loss suffered because of a tort committed by its employee outside the course of his employment.

C) A general partner who retires from the partnership by giving notice of his leaving to the other partners could still be found liable for debt pursuant to a contract made when he was a partner.

D) A general partner has limited liability for any loss suffered because of the negligent act (e.g., omission) of one of her partners.

E) A limited partner has unlimited liability beyond the amount of his initial investment.

19) Dave and his sister Chris made unusual kites. They both created the designs; Dave made the patterns. Friends had always wanted to buy their kites. After Chris completed a college marketing program, she began to talk to Dave about going into business selling kites. Ed, a friend of Chris's, wanted to be involved. He said he could buy the supplies and do the other odd chores. They decided to try to make a go of it and to share the profits as follows: Dave 35%, Chris 35%, and Ed 30%. Things went well for 7 months. They even hired George to deliver kites to the increased number of stores buying them. Unfortunately for business, Chris and Ed became romantically involved. This was followed by a heated dispute. Ed disappeared with $1,300 collected from customers and $600 worth of supplies, which he had bought on behalf of the business from their regular supplier. At about the same time George negligently broke a customer's $200 lamp when he was delivering a kite. On these facts, which of the following is true?

A) When Ed buys supplies for the business on credit, he is acting as an agent for the business, and he alone is liable for those debts.

B) Although George broke the lamp while delivering kites, the partners are not liable, because it was George's own fault.

C) If the partnership funds are not sufficient to pay the partnership debts, the creditors can look to the individual partners for payment.

D) Only Chris would be responsible Ed's misapplication of the customers' money.

E) Since Dave, Chris, and Ed did not sign a partnership agreement, they are not considered a general partnership.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

20) Joe and Sam were in business school together. After they graduated, they decided to open an ice-cream store in a mall together. They had skipped the classes where they were taught about different methods and forms of carrying on business and so gave no thought as to how they would structure their relationship. Which of the following is true with respect to the legal positions of Joe and Sam?

A) If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, he must share any profits he makes with Joe.

B) If Sam were to find a great deal on anchovy ice-cream and purchased 2000 litres of it, only Sam would be liable for the debt incurred as a result of the purchase.

C) Sam and Joe are not in a partnership since they have not specifically agreed to be.

D) If a customer were injured because of poorly kept food and Sam did not have the assets to pay his half, Joe would only have to pay for his half of the damages suffered.

E) If Sam opens up another ice-cream store in another mall in a nearby city without telling Joe, Joe would be liable for any losses he suffered along with Sam.