Romeo Is an Engineer and Owns RR Consulting

question 56

Multiple Choice

Romeo is an engineer and owns RR Consulting.His wife,Carmen,though not actually involved in the company,often helps out around the office.One day,when Romeo is out and Carmen is alone in the office,an agent representing XYZ Construction comes in to contract Romeo's services.Carmen tells the agent that she is one of the owners of the company and that they would be willing to do the work.When he gets back,Romeo refuses the job.Who bears the liability?

• A)Romeo because he is the principal
• B)XYZ Construction because they did not check to see if Carmen had authority
• C)RR's agent because he did not check to see if Carmen had authority
• D)Carmen because she acted as if she was the principal
• E)XYZ and Romeo are both liable under the terms of the contract

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