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Rose and Frank form a partnership to run a bakery. Since Frank tends to spend too much money on kitchen gadgets, both parties agree that Rose will buy the necessary supplies. Rose faithfully buys her supplies from Olivia, who is also a customer of the bakery. Olivia tells Frank about a new line of cookware. Frank immediately buys some and begins cooking with it that day. Rose finds out and states that she won't be paying for the items, since she is the partner who buys supplies. Which statement best explains the situation?

Rose is

a. not liable because cookware would not be considered a supply.

b. liable because of actual authority.

c. liable because of implied authority.

d. not liable because she was the partner responsible for buying supplies.

Operation Management, Management Studies

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