If an Agent Is Appointed to Engage in Illegal Acts

question 17

Multiple Choice

If an agent is appointed to engage in illegal acts on behalf of the principal:

• A)the agent's appointment can be terminated by principal or agent without notice.
• B)the agent's appointment is automatically terminated.
• C)any contract negotiated by the agent on behalf of the principal, while enforceable in a civil court, will attract criminal penalties.
• D)the third party will not be bound to honour the contract with the principal but the agent's appointment will be valid.

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Definitions:

Marginal Revenue

The additional income received from selling one more unit of a good or service.

Demand Curve

A graphical representation demonstrating the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Short Run

A period in economic analysis where some factors of production are fixed and cannot be changed.

Market Demand

The aggregate amount of a product or service that every consumer in a market is prepared and capable of buying at different price levels.