Jim and Fred ran a landscaping business for years, with Jim concentrating solely on business customers, and Fred focusing only on residential customers. After succeeding for a number of years, they went their separate ways and divided the business. They agreed that Jim was to keep the current business location, and Fred would seek a different office location, with Jim telling Fred he would be able to use the offices of their old company while he looked for the separate location. Fred did so for meetings with clients, as well as using original company machinery and supplies, and even continued using the original stationary with letterhead of the initial business. Six months down the road, Fred vanished, taking with him down payments of some customers. Those customers now sue Jim.

a. Because of the terminated relationship, Jim is not liable.
b. Because of lingering apparent authority, Jim is liable.
c. Because he was Fred's agent, Jim is not liable.
d. None of the above