Lloyd is a partner of an ordinary partnership firm in the business of providing tax services.While serving a client on behalf of the partnership,Lloyd's partner Janet intentionally understates the client's taxable income on a federal tax return.When the true income is reported a few years later,the client is required to pay a penalty.The client sues the partnership and its partners.Which of the following is correct?

A) Janet is not liable to the client because she was acting on behalf of the partnership.
B) Lloyd is not liable to the client,unless he authorized Janet to understate the client's income.
C) The partnership is not liable to the client because the intentional tort is outside the scope of business.
D) Janet is not liable to the client because she was acting in the ordinary course of business.

Question

Maurice Obeid · Accepted Answer

Final Answer : B, Explanation :  While a partnership and its partners are usually liable for a partner's negligence,they usually have no liability for a partner's intentional torts.A few intentional torts impose liability on a partnership and its partners.For example,a partner who authorizes a partner to commit an intentional tort is liable for such torts.

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