[Health Food] Josh and Merida Are Partners and Owners of J&M

question 78

Multiple Choice

[Health Food] Josh and Merida are partners and owners of J&M Health Food Store. Carson, who is a registered dietician, works for J&M on and off as a consultant, as he is very knowledgeable about the health benefits of natural herbs. Carson travels to conventions around the country and tests new products and often relays information about the new products to J&M. At a convention last month, Carson met Monte, a vitamin producer, who stated that he was glad to meet one of J&M's partners. Carson replied that the new Fresh product line was exactly what J&M needed and placed a significant order for J&M. When the Fresh product was delivered, J&M had closed the store for remodeling, and the product spoiled.
-Can Monte seek damages from Carson?

• A) No, because the agreement was with J&M.
• B) Yes, because Carson represented himself as a partner of J&M and Monte reasonably relied on this information to his detriment.
• C) No, because Monte should have verified the delivery.
• D) Yes, because Carson is a partner of J&M, and Carson can seek indemnification from J&M.
• E) No, because there was no partnership by estoppel.

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Definitions:

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