Asked by Deeksha Vijay on Jun 26, 2024
Verified
Julia and Mary are business partners. Mary buys 100 black leather dresses for the partnership, but fails to pay for them. Julia is
A) not liable for the cost of the dresses because Mary bought them.
B) liable for the cost of the dresses because of joint liability.
C) not liable for the cost of the dresses because of fiduciary duty.
D) None of these choices is correct.
Joint Liability
Shared liability. In partnership law, partners incur joint liability for partnership obligations and debts.
Fiduciary Duty
A legal obligation of one party to act solely in the best interest of another party, such as a trustee for a beneficiary.
- Comprehend the principles of joint, several, and vicarious liability within the context of partnership law.
Verified Answer
RS
Robert StephanJul 01, 2024
Final Answer :
B
Explanation :
In a partnership, partners are jointly liable for the debts and obligations of the business. Therefore, if Mary buys dresses for the partnership and fails to pay for them, Julia is also liable for the cost due to their joint liability in the partnership.
Learning Objectives
- Comprehend the principles of joint, several, and vicarious liability within the context of partnership law.
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