In April 2010,Mary joins an architectural firm as a new partner in a general partnership,bringing the total partnership to five partners.Mary invests $40,000 in order to be admitted to this partnership.In June,the partnership is sued for malpractice in connection with a building designed in 2009 by a partner who resigned in January 2010.In November 2010,a jury awards $300,000 in connection with the case.What is the maximum amount that Mary could be liable for in connection with this lawsuit?
A) nothing, because the partner who caused the problem is no longer in the partnership
B) nothing, because the malpractice was committed before Mary became a partner
C) $40,000, the amount of Mary's investment
D) $60,000, one-fifth the amount of the judgment
E) $300,000, the total amount of the judgment
Correct Answer:
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