Chuck, Betty, and Bert Form CB&B Partnership to Run a Specialty

question 57

Multiple Choice

Chuck, Betty, and Bert form CB&B Partnership to run a specialty grocery store.Bert is the day-to-day manager of the store, Betty buys the groceries, and Chuck does all the administrative work.Betty decides she would like a new car to go around and visit prospective wholesalers.She makes a contract with Big Ben Motors in the name of CB&B without consulting Chuck and Bert.CB&B and the individual partners are:

• A)bound by Betty's actual implied authority to buy a car.
• B)bound by Betty's apparent authority to buy a car.
• C)bound by estoppel.
• D)not bound because buying a car is outside the scope of the partnership business.

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Definitions:

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