Larry Is an Agent for Mary

question 56

Multiple Choice

Larry is an agent for Mary. She gives him clear instructions to enter into contracts on her behalf only on Mondays, Wednesdays, or Fridays. He enters into a contract on her behalf on Tuesday. Larry has breached

• A) no duty.
• B) the duty of loyalty.
• C) the duty of performance.
• D) the duty of obedience.

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Definitions:

SOX

Refers to the Sarbanes-Oxley Act of 2002, a United States federal law that set new or expanded requirements for all U.S. public company boards, management and public accounting firms, aiming to protect investors from fraudulent financial reporting.

Public Accounting Firms

Professional services organizations that provide accounting, audit, tax, and consulting services to businesses and individuals.

Real Risk-free Rate

The rate of return on an investment with no risk of financial loss, adjusted for inflation.

Federal Reserve

The central banking system of the United States, responsible for implementing monetary policy, regulating banks, and ensuring financial stability.