Multiple Choice
Ella is a partner in a law firm operating as a general partnership. One of the firm's clients deposited $1 000 000 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 $1 000 000. Which of the following is TRUE?
A) The partnership is not liable for Ella's negligence because Ella breached her fiduciary duty to act in the best interests of the partnership.
B) The partnership is not liable for Ella's negligence because negligence may be a criminal act as well as a tort.
C) The partnership is not liable for Ella's negligence because they did not authorize Ella to commit negligence.
D) The partnership would not be liable for Ella's negligence if it was a limited partnership.
E) The partnership is liable for Ella's negligence.
Correct Answer:
Verified
Correct Answer:
Verified
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