Multiple Choice
Reference - New Associate. Rick was a newly hired associate in a small law firm in his town which was operated as a partnership. The partners were Paula, Sam, Susie, and Jason. Bob, who ran an exotic pet store, had a complex legal problem involving the importation of venomous snakes from South America and came to the office to see Paula. Rick was walking by Paula's office at the time and was pleased and excited when Paula introduced him to Bob as her newest partner. Based on Paula's advice that it was perfectly legal for him to import the snakes and that he had no legal liability for snake bites, Bob imported some particularly dangerous snakes. One bit a customer resulting in a significant judgment against Bob in favor of the customer. Bob also had significant problems with the federal government for illegal importation activity. On the basis that Paula had told him that he had no legal liability for snake bites and that importing the snakes was perfectly legal, Bob sued the law firm partnership along with Paula, Sam, Jason, and Rick. Paula admits that she gave poor advice but says that she had no prior experience with venomous snakes. Rick tells you that he was a lowly associate, had never done work for Bob, and only met him briefly. Which of the following is true regarding whether Rick can be held liable to Bob?
A) He cannot be held liable because he was not a party to a written partnership agreement.
B) He cannot be held liable because he was not an actual partner.
C) He can be held liable under a theory of implied liability.
D) He can be held liable under a theory of partnership by estoppel.
E) He cannot be held liable because he did no work for Bob.
Correct Answer:

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Correct Answer:
Verified
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