Next Generation Bar Exam Quiz
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BUSINESS ASSOCIATIONS AND RELATIONSHIPS
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Pam and Dev are equal general partners in a printing company. Pam approves all supplier invoices. A long-time supplier submitted a duplicate invoice formatted identically to the original; no duplicate had occurred before. Pam, busy with a family emergency, approved both payments without comparing them, causing an $18,000 loss. Dev claims Pam breached her fiduciary duty of care by failing to catch the duplicate.
Is Pam likely liable to the partnership?
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