Ella Is a Partner in a Law Firm Operating as a General

question 62

Multiple Choice

Ella is a partner in a law firm operating as a general partnership.One of the firm's clients deposited $1 million 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 million.Which of the following is TRUE?

• A)Liability for Ella's negligence falls upon the partnership and upon each of the partners individually.
• B)The partnership is not liable for Ella's negligence because it did not authorize Ella to commit negligence.
• C)The partnership would not be liable for Ella's negligence if it was a limited partnership.
• D)The partnership is not liable for Ella's negligence because Ella breached her fiduciary duty to act in the best interests of the partnership.
• E)The partnership is not liable for Ella's negligence because negligence may be a criminal act as well as a tort.

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