Mary Was Just Appointed a Vice President of LMN Corporation

Mary was just appointed a vice president of LMN Corporation and placed in charge of their Chicago plant.As soon as she takes over,she hires a new employee and signs a contract for the purchase of needed supplies from Joe's Supply.When the payroll arrives at the LMN corporate office for approval,the president refuses to approve payment for the new employee that Mary hired.Similarly,the president refuses to approve payment for the supplies purchased from Joe's.The new employee and Joe sue both LMN and Mary for payment.What is the result?

A) Mary is liable,but LMN is not liable for both contracts.
B) Mary is not liable,but LMN is liable for both contracts.
C) Both LMN and Mary are liable for both contracts.
D) Neither LMN nor Mary is liable for either of the contracts.
E) LMN only is liable for the employment contract,but Mary alone is liable for the supplies contract.