Krishna and Ravi Operate a Sari Store as a Partnership

question 86

Multiple Choice

Krishna and Ravi operate a sari store as a partnership. They agree privately that they will not order supplies over $10,000 without both signatures. When Krishna is on vacation, Ravi orders $20,000 worth of silk. Krishna objects to paying the supplier and wants to return the shipment. The supplier sues the partnership. Which of the following is true?

• A)the partnership must pay the supplier because private restrictions don't affect outsiders to the partnership
• B)the partnership must pay because it owes a fiduciary duty to the supplier
• C)the partnership does not have to pay because Ravi exceeded her authority
• D)the partnership does not have to pay because Ravi exceeded her apparent authority.
• E)the supplier has to take back the shipment since there were not two signatures on the contract

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