Questions 2 through 4 are based on the following:

___ 2. Paula Principal instructs Arnie Agent that under no circumstances is he to hire any new employees for the plant store that he is in charge of operation, while she is away on her two-week vacation. Shortly after she leaves, Arnie hires Lois as a pruner and gives her a written three-year contract; he employs Bruno temporarily to help fight an infestation among the plants of the Maui fruit fly; finally, he sells Joshua ten percent of the business in return for a much needed infusion of cash. When Paula returns, she is horrified by Arnie's actions. If Paula attempts to dismiss Lois on the theory that Arnie had no authority to hire her:

a.She will win since Arnie lacked all express authority.

b.She will lose since Lois is an agent coupled with an interest.

c.She will lose since Arnie had implied authority inferred from the position he occupied as manager of the store.

d.She will lose since Arnie possessed apparent authority.