When Could an Agent Be Liable to a Third Party

question 4

Multiple Choice

When could an agent be liable to a third party?

• A)If the agent commits a tort,such as negligence.
• B)If the agent did not tell the third party they were acting for a principal.
• C)If the agent breaches their warranty of authority by acting outside their authority.
• D)In all of the above situations.
• E)In A and B only.

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Definitions:

Tendency

A predisposition to act or think in a particular way.

Decision-Making Process

The cognitive process leading to the selection of a course of action among variations.

New Learning Goals

Objectives set to acquire new knowledge or skills, often aimed at personal development or achieving higher competence in specific areas.

Prescribing

The act of authorizing and advising the use of medical treatments or drugs by a licensed healthcare professional.