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[Big Spender] Ryan Was a Partner in ZYX Law Firm

Question 63

Multiple Choice

[Big Spender] Ryan was a partner in ZYX law firm. He decided to withdraw from the partnership because he wanted to retire early in Costa Rica. The partnership agreement of ZYX law firm did not specify the objective or duration of the partnership. Although Ryan gave proper notice, the other partners claimed that he had no right to withdraw. Ryan was angry and decided to get even. Two days after he withdrew and before the partnership had provided notification to any suppliers of his departure, Ryan went to the office supply store at which he typically purchased supplies on account for the firm. He purchased several cameras, a computer, and other items, which he placed on the firm's account. Ryan just smiled when Joe, the manager at the store, told Ryan that he really appreciated the law firm's business. The next day Ryan headed for Costa Rica and cannot be located. Joe later requests that ZYX firm pay the bill for Ryan's purchases. The law firm, whose members had decided to continue the partnership after the dissolution resulting from Ryan's resignation, refused on the basis that Ryan had no authority to make the purchases. Joe says that he did not know that and that he expects to be paid immediately.
-Which statement is true regarding whether Ryan had actual authority to bind the partnership in regard to his purchases at the office supply store?


A) Ryan did not have actual authority to bind the partnership.
B) Ryan had actual authority to bind the partnership because the law firm had not notified anyone at the office supply that he was no longer authorized to make purchases for the law firm.
C) Ryan had actual authority to bind the partnership so long as the purchases were made within seven days of his resignation.
D) Ryan had actual authority to bind the partnership so long as the purchases were made within ten days of his resignation.
E) Ryan had actual authority to bind the partnership only if he cannot be found within one year of the date the purchases were made.

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