Anita, in violation of a specific agreement not to extend credit over $1,000 without the other partners' approval, extends credit of $2,000 to a friend. Anita will be held personally liable to the partners for any unpaid debt since she violated the duty of obedience.

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Anita violated the duty of obedience by extending credit over the agreed limit without approval from other partners. As a result, she will be held personally liable for any unpaid debt.

Anita, in Violation of a Specific Agreement Not to Extend