If an Agent Is Found to Have Received a Secret

question 69

Multiple Choice

If an agent is found to have received a secret commission from a third party, the principal is not entitled to:

• A)recover the secret commission and report the matter to the relevant authorities.
• B)refuse to pay any commission owed to the agent.
• C)terminate the contract with the agent and the contract with the third party.
• D)sue the agent in the tort of passing off.

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Definitions:

Equilibrium Price

The value at which there is a perfect match between how much of a good or service is wanted and how much is provided, leading to a state of market equilibrium.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Progressive Income Tax

A tax system in which the tax rate increases as the taxable income increases, aiming to distribute the tax burden more equitably.

Proportional Tax

A tax system where the rate of tax is constant regardless of the amount subject to tax, meaning everyone pays the same percentage of their income.