Which of the Following Is True of Tort Liability for Principals

question 5

Multiple Choice

Which of the following is true of tort liability for principals and agents?

• A) A principal is responsible for the tortious conduct of an agent irrespective of the scope of his or her authority.
• B) An agent is fully liable for his or her tortious conduct while on duty for the principal.
• C) An agent is liable for the principal's tortious conduct if he or she participates in it.
• D) An agent and a principal cannot be held responsible for the same tort.

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Definitions:

Giffin Good

A type of good for which demand increases as the price increases, contradicting the basic law of demand due to the income effect.

Income Effect

The relationship between changing income levels in an economy or for individuals and the subsequent effect on goods and services demand.

Substitution Effect

Describes how consumers react to an increase in a good's price by substituting another good, affecting the quantity demanded.

Marginal Utility

The additional utility or enjoyment derived from the consumption of one more unit of a product or service.