Steve owns a car repair shop, Steve's Garage. Steve has never seen the need to file any formal paperwork because he hires the best mechanics and is afraid he will be taxed twice on the money his business makes. Steve has an agreement with the Snap-On Parts Shop that they will give him a 10% discount on parts and bill him at the end of the month for all the parts purchased if his company buys all their parts from them. Steve is faithful to this arrangement and promptly pays his parts bill upon receipt.

John has been a mechanic for Steve's business for five years. He has picked up parts in his Toyota truck he is assigned to when parts are needed. Recently, John resigned to take another job. Unbeknownst to Steve, John started picking up parts in his personal Toyota truck at Snap-On for repair work John was doing on the side. John's truck looks just like the truck he drove for Steve's business. Snap-On sold parts to John thinking it was for Steve's business because they did not know John had left. Now, Snap-On has sent a bill to Steve that includes John's parts. Steve refuses to pay for John's parts and Snap-On is threatening to sue Steve's business and him personally. Under agency law, will Steve's business be required to pay for the parts? Why or why not? Please use two references :)