Questions: Which of the following examples will NOT breach a general partner's duty of limited care?
A. intentional misconduct
B. reckless behavior
C. gross negligence
D. ordinary negligence
E. known violation of law
Transcript text: Which of the following examples will NOT breach a general partner's duty of limited care?
A. intentional misconduct
B. reckless behavior
C. gross negligence
D. ordinary negligence
E. known violation of law
Solution
The answer is D: ordinary negligence.
Explanation for each option:
A. Intentional misconduct - This would breach a general partner's duty of limited care because it involves deliberate actions that are harmful or deceitful.
B. Reckless behavior - This would breach the duty of limited care as it involves actions taken with a disregard for the potential consequences, showing a lack of concern for the safety or rights of others.
C. Gross negligence - This would breach the duty of limited care because it involves a severe lack of diligence or care, significantly deviating from the standard of care expected.
D. Ordinary negligence - This typically does not breach a general partner's duty of limited care. Ordinary negligence involves a failure to exercise reasonable care, but it is not as severe as gross negligence or intentional misconduct.
E. Known violation of law - This would breach the duty of limited care because it involves knowingly engaging in illegal activities, which is a clear violation of legal and ethical standards.