Chuck, Betty, and Bert form CB&B Partnership to run a specialty grocery store.Bert is the day-to-day manager of the store, Betty buys the groceries, and Chuck does all the administrative work.Betty decides she would like a new car to use when calling on prospective wholesalers.She makes a contract with Big Ben Motors in the name of CB&B without consulting Chuck and Bert.CB&B and the individual partners are:
A) not bound because buying a car is outside the scope of the partnership business.
B) bound by Betty's apparent authority to buy a car.
C) bound by Betty's actual implied authority to buy a car.
D) bound by estoppel.

Question

Quizplus · Accepted Answer

Betty's decision to buy a car for visiting wholesalers, without consulting Chuck and Bert, falls outside the scope of the partnership's primary business of running a specialty grocery store. Therefore, the partnership and the individual partners are not automatically bound by her actions in this context.

Chuck, Betty, and Bert Form CB&B Partnership to Run a Specialty