Question
Ryan hires Harold to be manager of Ryans restaurant. Ryan tells Harold he is authorized to purchase all food items needed for operation of the
Ryan hires Harold to be manager of Ryans restaurant. Ryan tells Harold he is authorized to purchase all food items needed for operation of the business and that charges can be made on account at the local supplier. Harold goes to the local supplier, says he is Ryans agent, and charges the food items to Ryans account. Ryan fails to pay the supplier, and the supplier files a lawsuit against Ryan and Harold. Which of the following is true?
Ryan can seek indemnification from Harold.
Harold will be not liable to the supplier because the supplier knew Harold was acting as agent for Ryan.
There was an apparent agency relationship between Ryan and Harold.
All are true.
None are true.
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