The Test for Determining Whether or Not a Gratuitous Agent

question 45

Multiple Choice

The test for determining whether or not a gratuitous agent has breached their duty of care to the principal is:

• A)A subjective test which entails consideration of what the agent thought was reasonable action in the circumstances.
• B)A subjective test which entails consideration of the degree of care a professional of reasonable skill and competence would exercise.
• C)An objective test which entails consideration of the degree of care that the agent ordinarily uses in attending to their own affairs.
• D)An objective test which entails consideration of the degree of care a reasonable person would exercise.

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Definitions:

Availability

The state of being able to be used or obtained; readiness for use.

Representativeness

A cognitive bias in decision making where the likelihood of an occurrence is evaluated based on how similar it is to stereotypes or typical cases.

Anchoring Bias

A mental shortcut in which a person gives disproportionate weight to the first piece of information they receive (known as the "anchor") during decision-making processes.

Anchoring And Adjustment

Anchoring and adjustment is a cognitive bias in decision-making where an initial piece of information, the "anchor," heavily influences subsequent judgments and adjustments.