Question

12) Grant is fairly certain that his partner Jenny is keeping things secret from him in their art deco design firm. Grant asks Jenny to see the books. She agrees but doesn't allow him to make copies. Grant said he has the right and Jenny said he does not because she is responsible for the books. Which is correct?

A) Grant, a partner has a right to copy partnership records.

B) Jenny, a partner does not have a right to copy any partnership records.

C) They are both right, however, a partner only has a right to copy partnership records that are not marked "confidential."

D) They are both right, however, a partner only has a right to copy partnership records that are not marked "confidential" and that are not being used in litigation.

E) Grant is correct, however, he only has a right to copy partnership records that directly impact that partner's right to profits.

14) In their partnership agreement, Tulum is responsible for the books. The principal office of the partnership is in Denver but Tulum works from home most of the time in Colorado Springs. Unless otherwise agreed, the records of a partnership ________

A) are kept in a safety deposit box at the bank used by the partnership.

B) are able to be taken to any partners home.

C) are to be kept at the location of the partnership's principal business office.

D) can be kept in a locked box at Tulum's house and brought back to the business each week to be audited.

E) can be kept at all the different locations of the partnership's business office.

16) Phillian and Millian enter into a partnership agreement and agree to bring in Millian's minor daughter Jillian to also serve as a partner in their partnership. Is this legal?

A) Yes, but the partnership agreement is voidable.

B) Yes, and the partnership agreement is valid.

C) No, this is not allowed by the UPA.

D) No, individuals serving as partners must have legal capacity to be partners and must be at least 18 years of age.

E) No, child labor laws do not allow minors to serve as partners.

Answer 1

12. (Option a) Grant, a partner has a right to copy partnership records.

Each partner shall have a right to access to and to inspect and take copy of any records.

14. (Option c) are to be kept at the location of the partnership’s principal business office.

The records of a partnership are to be kept at the location of the partnership’s principal business office, and each partner must have access to the books and be allowed to inspect and copy them upon demand.

16. (Option d) No, individuals serving as partners must have legal capacity to be partners and must be at least 18 years of age.

According to the section 30 of the Indian Partnership Act, provides that though a minor cannot be a partner in a partnership firm, but, with the consent of all the partners for the time being, he or she may be admitted to the benefits of the partnership by an agreement executed through his guardian with the other partners.