If Pete sold goods to Bob's business, and the store fails to pay him, who can he recover from?

The correct answer is that Pete can recover from either Bob or Ted, as they are jointly liable. In many business arrangements, particularly in partnerships or jointly held businesses, individuals can be held collectively responsible for business debts. This means that if one party defaults on a payment, the creditor (in this case, Pete) has the right to seek repayment from any of the liable parties.

If Bob and Ted are co-owners or partners in the business, they share liability for the business's debts. Therefore, even if one partner is primarily responsible for management or sales, both are still accountable for fulfilling obligations related to the business operations, including payment for goods purchased.

The other choices are focused on specific individuals or outcomes that do not encompass the legal principle of joint liability. For instance, stating that Pete can recover only from Bob ignores the potential liability of Ted; suggesting recovery from only Ted disregards the responsibilities of Bob. Lastly, claiming that neither can be pursued for payment simply because the business failed overlooks the rights of creditors in these situations—creditors can still seek personal recovery from liable parties. This illustrates the importance of understanding business structures and how they align with liability in commercial transactions.