Beth and Connie do business as Dig Excavators. In acting on the firm's behalf, Beth makes an honest error in underestimating the cost of a certain project. In this situation, to her firm, Beth is liable for a breach of the duty of
A)care.
B)accounting.
C)loyalty.
D)none of the choices.

Question

Quizplus · Accepted Answer

Beth's honest error in underestimating the cost of a project does not constitute a breach of duty of care, accounting, or loyalty. The duty of care involves acting in a reasonably prudent manner, and honest mistakes do not equate to breaches of this duty.

Beth and Connie Do Business as Dig Excavators