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

Question 29

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 use when calling on 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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