business law

During June and July of 1981, Taylor Rental Center rented pumps and sandblasting equipment for use on the M/V Courtney D, a seagoing vessel. Apparently, the vessel was owned Paramount Petroleum Corporation. When the request for the rental was submitted, Taylor checked the authorization to rent by telephoning the number given. The phone was answered by a business calling itself “Paramount,” and Taylor was instructed by phone to send invoices for the rental charges to the Houston post office box of the company. The identifications of the employees picking up the equipment were also checked by Taylor. A second request to rent equipment was made by a captain claiming to represent Paramount Steamship Company, LTD. Since the equipment was to be used on the Courtney D, and since the invoices were to be sent to the same address as the earlier rental, Taylor assumed the two Paramount firms were a single enterprise or a partnership. The invoices went unpaid, and Taylor learned that Paramount had apparently gone out of business. Taylor then sought payment from Paramount Petroleum, claiming that it was liable for the bill of its partner. The trial court held for Taylor, Paramount appealed. How should the court hold and why? Assume that Taylor keeps it judgment, how can they collect their money?