Blythe and Cali do business as Diamond Investments. In acting on the firm's behalf, Blythe makes an honest error in overestimating the value of a particular stock purchase. To her firm, Blythe is

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Quizplus · Accepted Answer

Blythe is not liable for her honest error in judgment because it does not amount to a breach of any duty owed by her to the firm. Her actions were taken in good faith and with the intent to further the firm's interests. As long as Blythe was not acting with a conflict of interest or engaged in intentional wrongdoing, she would not be personally liable for her mistake.

Blythe and Cali Do Business as Diamond Investments