Prentice and Mercedes are partners in a catering business. The law of agency:
A) has no significance for their business.
B) is important to their business because both Prentice and Mercedes are agents of the partnership and as such have the authority to represent and bind the business in all usual transactions of that partnership.
C) will only affect their business if they hire employees.
D) will only affect their business if they hire independent contractors.

Question

Quizplus · Accepted Answer

The law of agency is crucial in a partnership because each partner acts as an agent of the partnership, having the authority to bind the business in transactions related to the partnership's usual operations.

Prentice and Mercedes Are Partners in a Catering Business