A Manufacturer of Computer Disk Drives Has Contracted with You

question 65

Multiple Choice

A manufacturer of computer disk drives has contracted with you for you to be its agent in finding customers for their products.You arrange (without the principal's knowledge) a sale of the disk drives to a computer assembly business that you and your sister own.You have:

• A) not violated any of an agent's duties
• B) violated the duty of loyalty by usurping an opportunity
• C) violated the duty of loyalty by competing with the principal
• D) violated the duty of loyalty by self-dealing
• E) violated the duty of loyalty by engaging in a dual agency

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Definitions:

Future Earnings

The expected financial profits or income of an entity or individual for future periods.

Family-owned Businesses

Enterprises that are managed, operated, and primarily owned by one or more family members.

Sole Proprietorships

A form of business ownership with a single owner who manages the company and is responsible for all business debts.

Partnerships

Legal arrangements in which two or more parties agree to operate a business together, sharing its profits and liabilities.