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MMLU-Pro / 1559 / Pete Smith is the active partner and Bill Jones is the silent partner in a…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

Pete Smith is the active partner and Bill Jones is the silent partner in a general partnership known as "Pete Smith Plumbing." After six years of being uninvolved in the management of the partnership business, Bill purchases 100 toilets for the business. Pete is incensed because it will probably take years to use up the inventory of so many toilets and seeks your advice. The best advice is

category

law

options

  1. The partnership can only be bound by the actions of the active partner, not the silent partner.
  2. silent partners are investors only and cannot bind the partnership.
  3. Bill can bind the partnership by his act.
  4. Bill's action is invalid because he did not consult with Pete.
  5. The partnership can return the toilets, as Bill did not have the authority to make the purchase.
  6. unless his name is in the partnership name, third persons are "on notice" that he is unauthorized to contract for the partnership.
  7. Pete can sue Bill for the unnecessary expenditure.
  8. Bill, as a silent partner, is not authorized to purchase and, therefore, the sale may be set aside.
  9. The third party who sold the toilets to Bill can be held liable for not verifying his authority.
  10. If Bill purchased the toilets using his personal funds, the partnership is not bound by his actions.

src

ori_mmlu-professional_law

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Source and history

upstream_id / Original problem ID
1559
task_id
ce99ca02-6922-5595-8223-73d8ff00775f
task_key
default--test--1559
task_revision_id
1
config / split
default / test

Official source

initial import