Question $1(2$ points$)$

Sidney and Carol are college friends and outdoor enthusiasts who have decided to turn their love of the outdoors into a business. They plan to open an extreme adventure park offering white water rafting tours and bungee jumping. The business will be called Fearless White Water Rafting Academy $("$Fearless$").$

Sidney and Carol are planning to each invest $$100,000$ of their own money into the business. Originally, Sidney and Carol registered the name Fearless White Water Rafting Academy as a business name but did not file any other forms with the government.

$1.$ Carol and Sidney are unsure of what business structure is most appropriate for them. Which of the below statements is true $(2$ marks$)$:

a$.$ The business is a Limited Partnership, because they registered it as a business name under the Business Name Act.

b$.$ The business is a Partnership because Sidney and Carol are working in concert to run Fearless with a view to profit.

c$.$ The business is a Limited Liability Partnership because this will ensure that each of them are shielded from liability from the negligence of the other partner.

d$.$ The business would normally be a Partnership because Sidney and Carol are working in concert to run Fearless with a view to profit, but it will not be recognized because they failed to register it under the Partnership Act.

e$.$ It is a corporation because it is registered under the Business Name Act.

Question $1$ options:

Question $2(8$ points$)$

In order to operate the business, Sidney and Carol need to find a location on a river with white$-$water rapids. The pair are very busy with other aspects of the business and ask Michael, an old college friend to find a suitable location for them. They tell Michael to keep the identity of Fearless a secret because the adventure park business is very competitive and they do not wish any of their competitors to find out about their plans. They tell him he is only authorized to offer property owners a maximum of $$750,000$ for any property.

$2.$ Michael views various properties on behalf of Fearless while keeping Fearless' identity secret. He finds the perfect property. It is on the water. It is beautiful. The cost is $$1\mathrm{.}2$ million. He decides it is perfect and purports to buy it on behalf of Fearless. Who would be bound by the contract? If Fearless ends up liking the property, what should it take to ensure the contract is binding on Fearless? $(8$ marks$)$

Question $2$ options:

Question $3(8$ points$)$

Finally, Carol and Sidney are ready to open their business. The business is to operate from the May $24$th weekend to October $31$st each year. The business has ten employees who work as cooks, servers at the "burger pit" restaurant located on the premise, oversee the bungee jumping and steer the white$-$water rafts.

One of the individuals working for Fearless is Martin. Martin was hired to operate the rafts. A raft operator must be carefully trained as navigating through whitewater with customers can be very dangerous. Carol and Sidney felt they were lucky to land Martin as he was previously been employed for six years by one of their competitors. In fact, they had actively lured him away.

Martin arrived late for work from time to time but the problem was not chronic and Carol and Sidney have never made an issue out of it$.$ However, one night, after working for Fearless for two seasons, Martin showed up late for work and appeared to be somewhat intoxicated. Sidney spoke with him and immediately could smell liquor on his breath. In front of two other staff members, Sydney and Martin had the following exchange:

Sidney: "Martin this is the last straw! Drinking while operating a raft is dangerous and will not be tolerated!"

Martin: "Hey, why am I being singled out? Do you really think that at an outdoor camp, I$\text{'}$m the only staff member who enjoys a drink? Anyway, I am not drunk and can explain the smell."

Sidney: $"$We are not talking about other staff members. We are talking about you! I want you out of here! Your fired, get out now!

$3.$ Martin is upset. He found the dismissal humiliating. Does he have any recourse? Be sure to address what the courts will consider in awarding any damages he might have suffered. $($eight marks$)$