In which one of the following situations would Sam not be liable for the conduct of his partner, Joe?
A) Joe is in a partnership with Sam in a shoe store, and without telling Sam, Joe opens up a franchise of Big Toes Shoes in an adjoining municipality, which suffers a loss.
B) They made it clear in their partnership agreement that they would not be liable for each other's actions.
C) Joe, without the knowledge or consent of his partner Sam, purchases a gross of patent leather shoes in the name of the partnership shoe business.
D) Joe absconds with trust funds he has accepted from a client in his accounting partnership with Sam.
E) Joe is in a partnership with Sam and injures a customer while doing partnership business.

Question

Quizplus · Accepted Answer

Joe's action of opening a franchise in an adjoining municipality without Sam's knowledge is outside the scope of their partnership business, making Sam not liable for the losses incurred.

In Which One of the Following Situations Would Sam Not