Question

Terms:

Private Corporation	11. License
Limited liability	12. Joint & several liability
Actual authority	13. Public Corporation
Officer	14. Due diligence
Apparent authority	15. Limited liability partnership
Oppression remedy	16. Vicarious Liability
General partnership	17. Director
Corporation	18. Sole proprietorship
Limited partner	19. Franchise
Prospectus	20. Fiduciary duty

1. Jennifer was often seen in Fred’s Books, helping the owner. She often gave advice or answered the phone. When deliveries were made, Jennifer was often asked to sign. #_____

2. Bill thought that his model for running a convenience store was good. He thought others would be interested in opening similar such stores, using his know-how and trademark. #_____

3. If Zeus wanted to take his company public, he would need to do a number of things including filing one of these. #_____

4. Joe can show that he did everything reasonable in the circumstances to prevent the offence from occurring. #_____

Answer 1

Solution -

Jennifer was often seen in Fred’s Books, helping the owner. She often gave advice or answered the phone. When deliveries were made, Jennifer was often asked to sign. # Apparent Authority

Clarification - Jennifer's regular presence would give an impression to the third part that she has some authority as an agent to act on behalf of the firm even if not authority was provided.

Bill thought that his model for running a convenience store was good. He thought others would be interested in opening similar such stores, using his know-how and trademark. #Franchise

Clarification - A franchise business allows for the company to extend its trademark and know-how to other partners who can then open up seperate outlets under the parent company and yet own their individual stores.

If Zeus wanted to take his company public, he would need to do a number of things including filing one of these. #Prospectus

Clarification - When a company wishes to go public it is required to file a prospectus so as to invite the public to subscribe to the shares of the company. This is not done in case of private companies.

Joe can show that he did everything reasonable in the circumstances to prevent the offence from occurring. #Due Diligence

Clarification - Due diligence is a quality that defines all the necessary steps that can be take ordinarily to ensure that certain risks or mishaps are mitigated