Question
Mike and Molly owned a pet store as equal partners. They decided to close the store and terminate the partnership after the store was closed,
Mike and Molly owned a pet store as equal partners. They decided to close the store and terminate the partnership after the store was closed, a process they expected would take 3 months. During this time, Mike was responsible for overseeing the day to day operations of the store. Molly was tasked with dealing with their accountants and other things not related to the day to day operations. To save money, Molly did not renew the store's liability insurance policy, which expired 2 months after she and Mike made their decision to close the store. She did not tell Mike about her decision because she knew he would not agree with it. A week later, a customer was injured by a falling cage while shopping in the store. The customer sued. Is Molly liable for the customer's injury? To Mike? Is Mike liable to anyone? Discuss in detail.
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