Law531 Essay

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Week 1 Quiz LAW 531 Week 1 Quiz 1. The Black Squirrel limited partnership has been in operation for many years, but has recently fallen on hard times. The partners have decided to dissolve, although there are few assets remaining in the partnership. Shortly after the partnership filed its certificate of limited partnership, the partners had foresight to incorporate into their partnership agreement a provision that, in the event of dissolution, the assets would be distributed in payment of claims first to limited partners, then to general partners, then to creditors. Hilda is a limited partner and feels relieved that she will receive at least a portion of her capital. Henry, one of the general partners, said that this provision is void and unenforceable. Which of the following best describes the situation? a. The provision placing limited partners ahead of general partners is unenforceable, thus all partners would be on equal footing and ahead of creditors. b. The distribution of assets in the event of dissolution is one of the few provisions where the Revised Uniform Limited Partnership Act does not allow modification. c. The distribution, as called for in the agreement, would be enforceable if it had been included in any filings related to the limited partnership. d. The provision placing partners ahead of the creditors is not enforceable, but the priority of limited partners over general partners is enforceable. 2. Which of the following is true of the Federal Arbitration Act? a. It provides that arbitration agreements are valid, irrevocable and enforceable. b. It permits an appeal for all arbitration awards. c. It applies only to breach of contract disputes. d. It governs all types of alternative dispute resolution. 3. Which of the following is true regarding mediation? a. A mediator does not make a decision or an award. b. If a settlement

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