Bar Exam Uniform Quiz
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BUSINESS ASSOCIATIONS AND RELATIONSHIPS
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A general partnership was formed to invest in antique cars. One partner was an expert mechanic and was responsible for inspecting and maintaining the cars. He discovered that one of the partnership's cars had a rare engine defect that, if not repaired, would cause catastrophic failure. The repair would cost $5,000. Believing the risk was low and wanting to avoid the expense, he did not perform the repair and did not inform the other partners of the issue. Six months later, the engine failed, and the car's value dropped by $50,000.
Which of the following best describes the expert partner's potential liability to the partnership? Select one.
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