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 ownerĂ˘â‚¬â„˘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 ownerĂ˘â‚¬â„˘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 Ă˘â‚¬Ĺ“Westchester Manor Apartments.Ă˘â‚¬Âť Believing that Rosenberg owned the complex, Reid-Floors did not learn of the true ownerĂ˘â‚¬â„˘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.