OR Bar Business Associations 2

Question 1

An agent acting within the scope of apparent authority binds the principal when the third party's belief is based on:

Accepted Answer

Conduct of the principal that created a reasonable belief of authority

Answer

Apparent authority arises from the principal's conduct that leads a third party to reasonably believe the agent is authorized, not from the agent's own claims.

Question 2

Under the Uniform Partnership Act as adopted in Oregon, when is a partnership formed?

Accepted Answer

When two or more persons associate as co-owners to carry on a business for profit

Answer

A general partnership is formed by association as co-owners to carry on a business for profit — no filing or written agreement is required.

Question 3

A limited partner who participates in control of the partnership's business under the Revised Uniform Limited Partnership Act (RULPA) risks:

Accepted Answer

Personal liability only to creditors who reasonably believed the limited partner was a general partner

Answer

Under RULPA, a limited partner who participates in control is liable only to those third parties who reasonably believed the limited partner was a general partner.

Question 4

An employee negligently injures a customer while making deliveries during work hours. Under respondeat superior, the employer is:

Accepted Answer

Vicariously liable because the employee was acting within the scope of employment

Answer

Respondeat superior makes an employer vicariously liable for an employee's torts committed within the scope of employment, regardless of the employer's own fault.

Question 5

A general partner who transfers her partnership interest to a third party without consent of the other partners:

Accepted Answer

Transfers only the economic rights; the transferee does not become a partner

Answer

A transfer of a partnership interest conveys only the transferor's economic rights (profits and distributions), not management or voting rights, unless the other partners consent.

(OR Bar) Oregon Bar Exam Practice Test

(OR Bar) Oregon Bar Exam Practice Test

OR Bar Business Associations 2