Ethical And Legal Topics In Business

Ethical And Legal Topics In Business

1. Hal and Miranda have a general partnership business for landscaping projects. Hal makes a contract with a customer for a project one day while Miranda is absent and leaves on vacation the next day. Miranda does not feel she has the time to perform the contract for the customer. Which of the following is true?

· Miranda is obligated to perform the contract.

· Only Hal is obligated to perform the contract.

· Indeterminable without more information.

· Miranda may relinquish her obligation to perform the contract since Hal signed it without her knowledge.


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Noodleoo, a struggling restaurant chain, wants to enact a franchise agreement with Stephen to sell its product through a chain-style franchise. Stephen agrees and opens the store, and 6 months later Noodleoo goes bankrupt. Which is most likely true of this situation?

· If Noodleoo was not transparent with its financial data, Stephen has no recourse.

· If Noodleoo was transparent with its financial data, it owes no recompense to Stephen.

· More than one response is correct.

· If Noodleoo was not transparent with its financial data, it has broken the franchise rule.

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Match each prompt with the role that matches each person best.

Kevin wants to create a business but is not sure what role is best for him. He has capital to invest. He has several partners with which he can begin a business. He has the most management experience of all his potential partners.Apol wants to start or join a business but is not sure which business organization would be best. She has a large amount of capital but does not yet have any partners who can invest or effectively manage the business.

Manny wants to be involved in a business but is not sure which type of business to join or create. He has capital to invest. He has a good network of potential investors and partners. He has no experience in management.

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