Maury Slater and Harry Katz Operate a Clothing Store, Maury's

Multiple Choice

Maury Slater and Harry Katz operate a clothing store, Maury's Fifth Avenue, as a partnership. They agree that Maury will concentrate on sales and Harry will deal with the wholesalers. Harry tells all his suppliers not to listen to Maury if he should call. While Harry is in Florida for a two week vacation and Maury is minding the store, Joe Feller, the sales representative for Regency Clothes, one of their major suppliers, pays a visit. He leaves with an order for 200 suites, when Harry returns, he tells Joe he won't pay for them. Can Regency sue Fifth Avenue?

A) Yes. The indoor management rule applies.
B) Yes. Maury had apparent authority to place orders for the partnership
C) No. Regency was aware that Maury did not have authority to make orders.
D) No. The indoor management rule applies only to corporations.
E) Both A and B