100% + Business Associations Andy, Ruth, and Molly decided to launch a business called The Batting Average (TBA), which would publish a monthly newsletter with stories about major league baseball players. Andy, a freelance journalist, was responsible for writing the stories. Andy conducted all of his business activities via a close corporation called Baseball Stories, Inc., of which he was the only employee. Ruth was responsible for maintaining TBA's computerized subscriber lists, mailing the newsletter every month, and billing TBA subscribers. Molly provided all equipment necessary for TBA. Andy, Ruth, and Molly expressly agreed to the following: Molly would have exclusive authority to buy all equipment necessary for TBA; and TBA's net profits, if any, would be equally divided among Andy, Ruth, and Molly. Andy subsequently wrote a story in the newsletter stating that Sam, a major league baseball player, had been taking illegal performance- enhancing drugs. Andy knew that the story was not true, but wrote it because he disliked Sam. As a result of the story, Sam's major league contract was terminated. While writing the story, Andy's computer failed. He bought a new one for TBA for $300 from The Computer Store. The Computer Store sent a bill to Molly, but she refused to pay it. Sam has sued Andy, Ruth, Molly, TBA, and Baseball Stories, Inc. for libel. The Computer Store has sued Andy, Ruth, Molly, and TBA for breach of contract. Q1. What type of business formation did Andy, Ruth and Molly form. Discuss the type and elements of the business formation. Q2. Determine the liability that exists. Q3. Can TBA be held liable to Sam for Andy's tort? Discuss Q4. Did Andy have an Express, Implied, or Apparent Authority when he bought the computer for TBA? Q5. Can Andy, Ruth and Molly be held liable for $300 to The Computer Store? Discuss O a X W V