Exam InstructionsPart 1Please answer the followingquestions in about 200 words. (10 points* 7 questions=70 points)1. For an agency agreement to be bindingbetween the principal and agent, what is required and what is the effect if arequired element is not met?2. Discuss the role of the Partnership Act asit relates to people carrying on joint business activities.3. Explain under what circumstances an agentcan be liable for his conduct rather than the principal.4. Despite its organizational simplicity, soleproprietorships must satisfy many federal, provincial, and municipalrequirements to carry on business. List and describe three regulatoryrequirements.5. Contrast the obligations and duties ofdirectors and shareholders of a corporation.6. To what does the term “duediligence” refer?7. Discuss the role of strikes, lockouts, andpicketing, and whether or not they have any place in our present society.Part 2Case Analysis Questions: For each ofthe following questions provide a brief fact sheet, legal issues and analysis.(10 points * 3 questions= 30 points) 300-400 per question8.a) Joeis a shareholder of XYZ Corporation, an extremely profitable corporation in thesoftware business, and was upset when the directors of the corporation refusedto declare a dividend again, ploughing the money back into research anddevelopment. Joe sued, along with several other shareholders, claiming thatthere was no excuse for withholding dividends under these circumstances.Explain the likely outcome.b) Joeis an environmental activist and he acquired shares in Big Forestry Ltd. (aforestry corporation), only for the purpose of undermining Big Forestry Ltd. byspeaking against their practices at annual shareholders’ meetings and gettingaccess to confidential information. Joe spoke against Big Forestry Ltd. atevery opportunity. Explain his legal obligations to the corporation under thesecircumstances.9.a) Joeworked for Harry’s Fine Toys for a period of six years. In September, he leftHarry’s Fine Toys and went to Sam’s Toy Shop, a competitor, and disclosedHarry’s Christmas line of toys. What could Harry do under these circumstances?b) Joewanted to start up a restaurant business. He did some research and found outMcDonald’s had not properly registered its trademark, the golden arches, in hisparticular area. Joe used a similar pair of arches over his restaurant andstarted business. Explain any danger he might face.10.a) Joeverbally agreed with his landlord to a two-year lease for an apartment. Onlyfive months later, the property was sold to somebody else. The new owners gaveJoe three months to vacate the premises. Explain Joe’s legal rights under thesecircumstances.b) Joebought a car from Harry’s Fine Car Lot and owed him $5000 on the deal, which hewas paying back at $500 a month under a Security Agreement. Harry assigned thatSecurity Agreement to Ace Finance Company, and they served notice on Joe thathe was to make his payments in future to them. Joe knew, however, that his dealwas with Harry, and he ignored the notification and continued to make thepayments to Harry. What danger does he face in these circumstances?