An Agent Owes a Fiduciary Duty to His Principal, a Director

question 121

Multiple Choice

An agent owes a fiduciary duty to his principal, a director owes a fiduciary duty to the corporation, and partners owe a fiduciary duty to the firm and to the other parties. Which of the following is not true with regard to one's fiduciary duty?

• A) An agent would be in breach of his fiduciary duty if he let his interest conflict with his duty.
• B) A fiduciary is in a position of trust and owes true loyalty to the person depending on him.
• C) A shareholder owning a business that secretly competes with the corporation is in breach of fiduciary duty.
• D) A partner secretly competing with his own firm would be in breach of his fiduciary duty.
• E) An agent failing to disclose to his principal all information relating to the principal's business transaction would be a breach of his fiduciary duty.

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Definitions:

Psychodynamic

Refers to a psychological approach that emphasizes systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Humanistic

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual's experience.

Behavioral

Pertains to the actions or reactions of a person or animal in response to external or internal stimuli.

Sociocultural

Pertaining to the combination of social and cultural factors and their influence on individual behavior and society.