BLW 1002 Lecture Notes - Lecture 18: Respondeat Superior, W. M. Keck Observatory, Fiduciary
15 Nov 2016
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Document Summary
Each and every partner is bound in fiduciary duty to the partnership: must make careful and informed decisions, must be loyal to partnership, must be honest in conduct of affairs. When partners are negligent (violate fiduciary duty) partner is liable for money damage to the partnership and is liable to be sued. Translates directly to respond (to bear responsibility for, to protect) superior. In a partnership, all partners respond to the entity of the partnership. If a partner gets into trouble, the partnership protects and cares for the partner: because the partnership put that person in the wrong place at the wrong time. Put in to effect in the case of accidents. Accident = being in the wrong place at the wrong time. No matter how careful you are in business, accidents will happen. The partnership is the superior, so it must be responsible. Partnership hires and pay for the lawyer, not the partner involved in the accident.
