If an Agent Is Appointed to Engage in Illegal Acts

question 69

Multiple Choice

If an agent is appointed to engage in illegal acts on behalf of the principal:

• A)The agent's appointment can be terminated by principal or agent without notice.
• B)The agent's appointment is automatically terminated.
• C)Any contract negotiated by the agent on behalf of the principal, while enforceable in a civil court, will attract criminal penalties.
• D)The third party will not be bound to honour the contract with the principal but the agent's appointment will be valid.

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Definitions:

Intervention Effects

The impact of external actions, often by governments or institutions, intended to alter an outcome or correct a market failure.

Rigid Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of production to determine the price of a product, without flexibility.

Pricing Strategies

The methods and tactics businesses employ to price their products or services effectively to attract customers and achieve profitability.

Flexible Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's variable cost, allowing for adjustments based on market conditions.