14a

Discuss the answers to the following scenario:

Doug is the owner of a chain of shoe stores. He hires Ray to be the manager of a new store, which is to open in Grand Rapids, Michigan. Doug, by written contract, agrees to pay Ray a monthly salary and 20 percent of the profits. Without Doug's knowledge, Ray represents himself to Carl as Doug's partner, showing Carl the agreement to share profits. Carl extends credit to Ray. Ray defaults.

Can Carl hold Doug liable as a partner.(See Formation and Operation)