If an Agent Does an Act That They Were Expressly

question 47

Multiple Choice

If an agent does an act that they were expressly instructed by the principal not to do, and the act is beyond the scope of their express or apparent authority, what will generally happen if the act is a tort that causes harm to a third party?

• A)The Principal will not be liable for the agent's actions and the third party will not be able to sue the principal in respect of the tort.
• B)The Principal will be entitled to terminate the agent's employment and have them prosecuted.
• C)The Principal will be liable for the agent's actions and can be sued for the tort.
• D)The agent will be an independent contractor.

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Definitions:

U.S. Market

The economic environment for buying and selling goods and services within the United States, encompassing all activities of production, promotion, and distribution.

Import Quota

A government-imposed limit on the quantity of a particular commodity that can be imported into a country over a specified period of time, used to protect domestic industries.

Domestic Producer

A company or individual that manufactures goods within their home country.

Foreign Producer

A company that produces goods or provides services in a country other than the one where the company is based.