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Joe Helquist and Samantha Gillis Were Partners in the Operation

Question 15

Multiple Choice

Joe Helquist and Samantha Gillis were partners in the operation of an office supply business for 32 years.Joe had always handled suppliers and Samantha was responsible for running the store and managing employees.Joe decided to retire and Samantha gave him a fine retirement dinner.Joe had some financial setbacks shortly after retirement when his wife became ill and two of his children decided to go on for their masters' degrees.Joe began ordering supplies from the usual suppliers since they were not aware of his retirement.Joe would intercept the supplies at the loading dock and then sell them on his own.Samantha soon caught the discrepancy in the bills and her inventory and refused to pay the suppliers when she learned of Joe's scheme.Which of the following statements is correct?


A) Samantha is not liable to the suppliers since Joe's authority terminated.
B) Samantha is not liable to the suppliers because Joe's acts constituted fraud.
C) Samantha is liable to the suppliers.
D) none of the above

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