Question
Frank Costanza was the manager of The Bro Grill, a sports bar and restaurant. As Manager Costanza had agency authority to handle the day to
Frank Costanza was the manager of The Bro Grill, a sports bar and restaurant. As Manager Costanza had agency authority to handle the day to day operations including the ordering of inventory and the management of subordinates. Cosmo Kramer, a patron and pal of Costanza, was often at the bar and had free access to its office. Kramer went with Costanza to open a bank account in the name of the bar, each signing the account signature cards as "owner." Kramer told others that he was "an owner" and "a partner." Costanza told Bob Sacamano, the president of Burgers & Fries, Inc., that Kramer was a member of a partnership that owned The Bro. On this basis, Burgers & Fries delivered its goods to The Bro Grill on credit. In fact, the bar was owned by a corporation. When the unpaid account totaled more than $20,000, Burgers & Fries filed a suit in state court to collect. Who should they sue? Who will end up paying the bill? Are there any other suits that might arise from this situation in law or in equity?
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