Teena, Isaiah, and Bart form a general partnership to sell automobiles. Teena, who is responsible for ordering inventory, orders large sport-utility vehicles (SUVs) that use great quantities of gasoline. A war breaks out unexpectedly in the Middle East that interrupts the supply of oil to the United States. The demand for large SUVs drops substantially, and the partnership cannot sell its inventory. Which of the following statements is true?

A.

Teena has violated her duty of care.

B.

Teena has violated her duty to inform.

C.

Teena is not liable because the duty of care was not breached.

D.

Teena must repay the partnership for the lost profits.

E.

Teena is liable under the business judgment rule.

Answer rating: 100% (QA)

In an overall organization each accomplice owes an obligation of care and an obligation of devotion to the association The obligation of care expects ... View the full answer