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 go around and visit 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)bound by Betty's actual implied authority to buy a car.
B)bound by Betty's apparent authority to buy a car.
C)bound by estoppel.
D)not bound because buying a car is outside the scope of the partnership business.

Question

Quizplus · Accepted Answer

The Answer of 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 go around and visit 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)bound by Betty's actual implied authority to buy a car.
B)bound by Betty's apparent authority to buy a car.
C)bound by estoppel.
D)not bound because buying a car is outside the scope of the partnership business.

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