Chuck,Bob,and Bert form CB&B Partnership to run a specialty grocery store.Bert is the day-to-day manager of the store,Bob buys the groceries,and Chuck does all the administrative work.Bob decides he would like a new car to drive to visit prospective wholesalers.He makes a contract with Big Ben Motors in the name of CB&B without consulting Chuck and Bert.The partnership is:
A) bound by Bob's actual implied authority to buy a car.
B) bound by Bob's apparent authority to buy a car.
C) bound by Bob's ostensible authority to buy a car.
D) not bound because buying a car is outside the scope of the partnership business.

Question

Quizplus · Accepted Answer

Bob's role in the partnership is to buy groceries, not vehicles. Making a contract for a car, especially without consulting the other partners, falls outside the scope of the partnership's business and his authority within that business.

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