What Is the Tort Liability of an Agent If the Tort

question 95

Multiple Choice

What is the tort liability of an agent if the tort was committed within the "course and scope" of the agency?

• A) The agent is released from liability.
• B) The agent and the principal will be held equally liable.
• C) The agent is liable for his or her own tortuous conduct.
• D) The agent will be liable, but only if the principal is unable to pay the victim's damages.
• E) The principal can assert the contributory negligence defense.

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Definitions:

Economic Rent

Income earned from the use of a resource that is in fixed supply; a payment to a factor of production in excess of the cost needed to bring that factor into production.

Nominal

Referring to a value expressed in current prices, without adjustment for inflation, as opposed to real values which are adjusted for inflation.

Real Wage

The purchasing power of wages, adjusted for inflation, indicating the quantity of goods and services that can be bought.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, typically used to assess inflation.