Which One of the Following Statements Is Correct with Respect

question 27

Multiple Choice

Which one of the following statements is correct with respect to the law of partnership?

• A) A partner is responsible for all torts committed by their partners.
• B) A partner is only responsible for those torts committed by the partner that are committed during the course of the business.
• C) Even where the tort is committed outside the scope of the partnership business, the partners will be liable for a tort committed by their partner.
• D) If a partner commits a tort in his own personal capacity outside of the scope of the partnership business, the victim has no recourse against any of the partnership assets.
• E) Where a person is injured by the careless action of an employee of a partnership in the course of his employment, that injured person has recourse against the assets of the partnership, but if those assets are not enough, he cannot go against the personal assets of the partners themselves.

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Definitions:

Rational Decision Maker

An individual or entity that makes choices that maximize benefits while minimizing costs, based on available information and logical analysis.

Shipping Fee

A charge applied for the transportation of goods from one location to another by sea, air, or land logistics.

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Marginal Cost

The increase in cost that arises from producing an additional unit of a good or service.