In: Economics
15) Leora files a suit against Moira, a medical doctor, alleging negligence because her baby is born with a birth defect. Leora may recover
Select one:
a.
only actual damages but not damages for pain and suffering.
b.
actual damages, punitive damages, and damages for pain and
suffering.
c.
both actual and punitive damages but not damages for pain and
suffering.
d. only punitive damages but not actual.
16) Akiyo and Hiroyo are partners of an architect design company. When Hiroyo suddenly dies, her husband Jason claims he has a right to replace Hiroyo as Akiyo's partner and receive all of Hiroyo's share of the profits. Which of the following is true?
Select one:
a. Jason has the right to replace his wife in the partnership but only has the right to the profits the partnership earns when he begins work.
b. Jason does not have the right to replace his wife in the partnership but does have a right to her share of the profits.
c. Jason does not have the right to replace his wife in the partnership and has no right to her share of the profits.
d. Jason has a right to replace his wife in the partnership and claim her share of the profits.
17) Jerry was a limited partner in a strip mall. Norman was the general partner. The business loses a large lawsuit and is forced to dissolve. Jerry is
Select one:
a. Liable to Norman for failing to contribute his labor.
b. 100% personally liable because he is a partner.
c.
Liable to the extent of his capital contribution because he is a limited partner. |
d. Liable for 50% of the debt since there are only 2 partners.
18) Smokey drops a cigarette on the ground while pumping gas into his car. The cigarette ignites spilled gasoline and creates a loud explosion. At the time of the explosion, Old Man Miller was walking his dog two blocks away and, upon hearing the explosion, suffers a heart attack. If he sues Smokey for negligence
Select one:
a.
He will likely win because dropping the cigarette was the
cause-in-fact of Miller’s heart attack.
b.
He will likely lose because Reasonable People will agree that Old
Man Miller should not have been walking his dog during an
explosion.
c.
He will likely lose because Miller’s heart attack was not a
foreseeable risk when Smokey dropped the cigarette.
d. He will likely win because Reasonable People don’t drop lit cigarettes onto the ground at a gas station.
15. d) Only punitive damages but not actual : This is the correct option as unitive damage include the punishment by the court for the losses be it financial or personal, so they can be recovered as the court will definitely punish the doctor but actual damage cannot be recovered as it includes the pain and emotional damage leora has suffered .
Other options
a)only actual damages but not damages for pain and suffering: This is incorrect because actual damages include the pain and suffering and it is never going to be recovered even if the doctors license is taken.
b)actual damages, punitive damages, and damages for pain and suffering: This is incorrect because actual damages and damages of pain and suffering cannot be recover, only the punitive damage can be recoverd.
c).both actual and punitive damages but not damages for pain and suffering: This is incorrect because both actual and punitive damage cnnot be recovered.
16.d) Jason has a right to replace his wife in the partnership and claim her share of the profits: This is correct because the law says that after a partner dies the shares of the business are handed over to the spouse or the children of the person who died, here wife died so the husband has the right to clain her shared and replace her in the partnership.
a)Jason has the right to replace his wife in the partnership but only has the right to the profits the partnership earns when he begins work: It is incorrect because according to the law the husband can replace the wife and can claim the profits even without starting the work.
b). Jason does not have the right to replace his wife in the partnership but does have a right to her share of the profits: It is incorrect because it says that jason does not have right to the shares of the profit of her wife but he definitely has the right to the shares.
c). Jason does not have the right to replace his wife in the partnership and has no right to her share of the profits: This is incorrect as according to the law he has the right to replace her as well as get the shares of profit .
17.c) Liable to the extent of his capital contribution because he is a limited partner: This is correct answer as jerry was a limited partner while norman was the general partner and partnership law says that the profit and loss is incurred on the value invested ie the ration of both the investors, so here jerry is liable to pay only the amount which covers his contribution .
a)Liable to Norman for failing to contribute his labor:This is incorrect as jerry cannot be held responsible as the company is being worked in partnership and l both of them are having liabilities according to the contribution .
b). 100% personally liable because he is a partner: This is incorrect because though the jerry is a partner but just a limited partner so this is totally injustice for him to pay the entire loss.
d)Liable for 50% of the debt since there are only 2 partners: This is incorrect as one is genral partner and one is limited partner, if the general partner can claim the profits in the ratio of capital contributed then the loss should also be distributed in the same manner .
18.d). He will likely win because Reasonable People don’t drop lit cigarettes onto the ground at a gas station : This is correct because everybody is well aware that droping lit cigarettes at the place where a gas station is built is very harmful and even life threatning and in case something like this happens the person responsibile will definitely be punished.
a) He will likely win because dropping the cigarette was the cause-in-fact of Miller’s heart attack: This is incorrect because heart attack can be caused due to any reason, we cannot specify it as it may be because of the explotion.
b).He will likely lose because Reasonable People will agree that Old Man Miller should not have been walking his dog during an explosion: This is incorrect beacuse everyone has the right to travel wnywhere with anyone so nobody can blaim anyone for walking at road.
c).He will likely lose because Miller’s heart attack was not a foreseeable risk when Smokey dropped the cigarette: This is incorrect because dropping the cigarette can cause any harm as he was an old man.