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 if the partnership pays a judgment obtained by Bob against it?
A) It may seek reimbursement from Paula.
B) It may seek reimbursement from Paula but only to the extent of 50% of the judgment.
C) It may seek reimbursement from Paula but only to the extent of 25% of the judgment.
D) It may seek reimbursement from Paula but only to the extent of 20% of the judgment.
E) It may not seek reimbursement from Paula.
Correct Answer:

Verified
Correct Answer:
Verified
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