1. Fine Art Corp. sent a written offer to buy 10,000 pencils for a total of $10,000 from Faber Pencil Co. Both parties are merchants. Faber can accept the offer by:
a) Promising to ship the pencils.
b) Promptly shipping the pencils.
c) Accepting the offer on Faber’s own written standard form contract.
d) All of the above could be valid acceptance.
2. Fay was admitted to Global Associates, an existing general partnership on January, 2014. In August, 2014, a partnership debt that was incurred in October, 2013 came due. Fay is:
a) Not liable for the debt because the debt was incurred prior to her joining the partnership.
b) Only liable for the debt up to the amount of her capital contribution to the partnership.
c) Personally liable only for 50% of the total debt if 50% of the other partners do not pay.
d) Personally liable for the full extent of the debt if the other partners do not pay.
3. Kelly, Lars and Mona agreed to be partners in Neighborhood Deliveries (ND), all splitting the profits equally. Kelly contributed 70% of the capital upon formation of the partnership. Later, the partners agreed to dissolve the partnership as it was not as profitable as they had expected, and its liabilities were greater than its assets.
The losses are paid by:
a) All the partners in proportion to their capital contributions.
b) All the partners in proportion to their share of the profits.
c) Kelly alone because she contributed the most capital.
d) Lars and Mona because they contributed the least amount of capital.