In: Finance
Under the doctrine of ______________, a partner in a partnership can be sued and held liable for conduct which he did participate in, ratify, or know about:
a. vicarious liability
b. joint and several liability
c. strict liability
d. agency
Vicarious liability | |||||||||||||||
When a party is held responsible for the unlawful actions of a third party. | |||||||||||||||
The third party is also held responsible for their unlawful action. | |||||||||||||||
The party that is held responsible for the third party's actions exercises control | |||||||||||||||
over the third party and is therefore held liable along with the third party. | |||||||||||||||
Joint and several liability | |||||||||||||||
When two or more parties are held independently responsible for an unlawful act. | |||||||||||||||
A single party can be held totally responsible for the unlawful act even if that party | |||||||||||||||
was responsible for some part of the unlawful act. | |||||||||||||||
Strict liability | |||||||||||||||
When a party is held responsible for an unlawful action even if the party was | |||||||||||||||
not at fault or did not act with negligence. | |||||||||||||||
Strict liability applies to defectively manufactured products. | |||||||||||||||
Under the doctrine of joint and several liability, a partner in a partnership can be sued and held liable for conduct which he did participate in, ratify, or know about. | |||||||||||||||
b. joint and several liability |