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) The partnership is liable for Ella's negligence including each partner jointly and severally.
B) The partnership is not liable for Ella's negligence because they 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:
Verified
Q2: Yasir and Rahool are partners in an
Q14: If two people share profits from a
Q18: Doren carried on a toy store business
Q19: Shareholders,acting solely as shareholder can incur obligations
Q20: Sam and Jemma each owned a 50
Q23: Which of the following statements is TRUE?
A)The
Q24: Wilder and Joanne are carrying on a
Q25: Which statement best describes the circumstances in
Q30: If you were considering selling $1 million
Q31: Babak and Cal are partners in a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents