Ella is a partner in a law firm operating as a general partnership.One of the firm's clients deposited $1 million in the firm account to be used by Ella to complete a real estate purchase.Ella negligently bungled the transaction with the result that the client lost the $1 million.Which of the following is TRUE?
A) Liability for Ella's negligence falls upon the partnership and upon each of the partners individually.
B) The partnership is not liable for Ella's negligence because it did not authorize Ella to commit negligence.
C) The partnership would not be liable for Ella's negligence if it was a limited partnership.
D) The partnership is not liable for Ella's negligence because Ella breached her fiduciary duty to act in the best interests of the partnership.
E) The partnership is not liable for Ella's negligence because negligence may be a criminal act as well as a tort.
Correct Answer:
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