Which of the Following Is True Regarding the Result of the Dispute

question 3

Multiple Choice

Which of the following is true regarding the result of the dispute in the Case Opener involving whether a joint venture between law firms was liable for the actions of a partner sanctioned for litigation misconduct?

• A) That the law firms were not liable because on the basis of the independent management of the law firms involved, no joint venture actually existed.
• B) That while a joint venture existed, vicarious liability could not be asserted in order to hold members of a joint venture vicariously liable for a partner's misconduct.
• C) That a joint venture existed and that members could be held liable for a partner's misconduct while acting in the ordinary course of the joint venture's business.
• D) That because a joint venture is defined as a multiple-purpose partnership, the participants could be held liable, but only if the misconduct stemmed from activities engaged in on behalf of the joint venture.
• E) That because a joint venture is defined as a multiple-purpose LLC, the participants could not be held liable regardless of whether the misconduct stemmed from activities engaged in on behalf of the joint venture.

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Definitions:

Tiling Grout

Tiling grout is a dense fluid used to fill gaps or joints between tiles, often for reinforcement, sealing, or decoration.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in sales volume, indicating the proportion of fixed costs in its cost structure.

Tiling Grout

A dense fluid which is used to fill gaps or used as reinforcement in existing structures between tiles during installation.

Contribution Margin Ratio

The proportion of revenue from each dollar of sales that goes towards covering fixed expenses and creating profit.