Donald Authorizes Alice to Purchase 200 Units of a Certain

question 36

Multiple Choice

Donald authorizes Alice to purchase 200 units of a certain electronic component. Alice identifies a suitable vendor and places the order. Alice bribes the vendor to have the goods delivered. Which of the following statements is true of this scenario?

• A) If Donald accepts the goods purchased by Alice, agency by ratification occurs.
• B) Alice has not fulfilled her duty of accounting to Donald.
• C) Duty of reimbursement and indemnification does not require Donald to reimburse the bribe paid by Alice.
• D) Duty of compensation requires Donald to reimburse the bribe paid by Alice.

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Definitions:

Mortgage Bond

A bond secured by a mortgage on a property, where the bondholders have a claim on the property in case of default.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature.

Coupon Bond

A bond that offers interest payments to its holder through coupons attached to the bond, redeemable at specified intervals before the bond's maturity date.

Zero Coupon Bond

A bond that is issued at a discount to its face value and pays no interest before maturity, when its full face value is repaid.