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Cleveland and Archie operate an antique store, owned as a partnership between the two. Cleveland disappeared. A few days later, Archie learned that Cleveland embezzled

Cleveland and Archie operate an antique store, owned as a partnership between the two. Cleveland disappeared. A few days later, Archie learned that Cleveland embezzled $90,000 of government grant money that was given in pandemic relief for their store during the Covid-19 crises. Is Archie responsible for the $90,000?

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No, because the embezzlement was done by Cleveland.

Yes, but only if Archie was aware of the embezzlement.

Yes, because Archie and Cleveland are partners.

No, because partners are not responsible for the wrongful acts of other partners.

Yes, but only to the extent of Archies investment into the partnership.

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