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Mickey Mouse and Dory, as partners, operated a retail store (selling Disney stuff, of course). After a few years, they agreed to end the partnership. Mickey agreed to oversee the going-out-of-business sale. Dory agreed to deal with matters not directly related to the hands-on operation of running the store. Dory received notice that the store's liability policy would expire on July 1. She decided not to renew the policy and let it lapse. The going-out-of-business sale would not be completed until August 1. In July, a customer slipped and fell in the store. When Mickey learned that Dory had allowed the liability policy to lapse, he was very upset and claimed he should not be liable for the customer's injury. Is Mickey liable to the customer? Explain.

Operation Management, Management Studies

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