Winmore Pty Ltd runs an online games development company. Chris is the managing director, Harry, a director and Merian is a non-executive director. Chris looks after the accounts while Harry designs online games. Merian on the other hand does not participate in the management but she helps time to time in fixing the errors in online games. Merian and Chris have agreed that all company transactions involving more than $2,000 will only be made with the approval of both directors.

Merian leased a new car in the company's name from Elite Cars Ltd at the cost of $10,000. When the representative asked for contact details, Merian showed her company ID that described her as a "non-executive director". Merian did not tell the other directors about the transaction. Merian uses the vehicle for her own purposes and to drive to work each day. When the first account from Elite Cars arrives, Winmore Pty Ltd refuses to pay saying that the company is not liable for the debt.

Required:

A) Advise Elite Cars whether this is correct under the Corporations Act by examining whether:

1. Merian had the actual authority to rent the car or

2. Merian had the apparent authority to rent the car.

B) Would your answer be different if Merian was held out to Elite Cars Pty Ltd as the managing director of the company?

C) Would your answer to the above question be similar if Elite Cars were aware of the agreement between Merian and Chris?