Which Statement Is False Regarding Termination of Agency Based on Operation

question 25

Multiple Choice

Which statement is false regarding termination of agency based on operation of law?

• A) Impossibility of performance terminates the agency relationship.
• B) An agency agreement is terminated whenever the agent, unknown to the principal, acquires an interest against the principal's interest.
• C) The agency agreement is terminated if the agent breaches the duty of loyalty he or she has to the principal.
• D) A change in law passed subsequent to the formation of an agency agreement may not result in termination of the agency agreement.
• E) If there is an unusual change in circumstances that leads the agent to believe that the principal's instructions do not apply, the agency relationship terminates.

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Definitions:

Spearman Rank-Order

An approach that doesn't rely on parameters to gauge the correlation of ranks, examining the extent to which a monotonic function can accurately represent the linkage between two variables.

Nominal Level

The simplest level of measurement that classifies data into distinct categories within which no order or ranking can be inferred.

Research Hypothesis

A statement made by researchers predicting a potential outcome or relationship between variables in a study, to be tested through empirical research.

Ordinal Level

A measurement scale that categorizes data into ordered categories that are meaningful but not mathematically equidistant.