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X and Y Are Partners

Question 25

Multiple Choice

X and Y are partners.Z is a third party who deals with Y.X will not be liable for an act by Y done in the usual way of business of the kind carried on by the partnership if:


A) Y has no express authority to act for the partnership in the particular matter and Z is aware of Y's lack of authority.
B) Z knows that Y has authority.
C) Z believes X to be a partner.
D) Z knows that Y is a partner.

Correct Answer:

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