Rosenberg Company managed Westchester Manor Apartments through its on-site property manager, Judith. Manor Associates Limited Partnership, whose general partner is Westchester Manor, Ltd., owned the complex. The entry sign to the property did not reveal the owner’s name but did disclose that Rosenberg managed the property. Judith contacted Reid-Floors and requested a proposal for installing carpet in several of the units. In preparing the proposal, Reid-Floors confirmed that Rosenberg was the managing company and that Judith was its on-site property manager. Rosenberg did not inform Reid-Floors of the owner’s identity. Judith and her assistant orally ordered the carpet, and Reid-Floors installed the carpet. Reid-Floors sent invoices to the complex and received checks from “Westchester Manor Apartments.” Believing that Rosenberg owned the complex, Reid-Floors did not learn of the true owner’s identity until after the work had been completed when a dispute arose concerning the payment of some of its invoices.

a. What arguments would support Reid-Floors in recovering on the outstanding invoices from both Rosenberg and Manor Associates?

b. What arguments would limit Reid-Floors to recovering on the outstanding invoices from either Rosenberg or Manor Associates?

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c. Explain what the outcome would be under (1) the Second Restatement and (2) the Third Restatement.

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