If There Is No Agreement Between a Principal and an Agent

question 70

Multiple Choice

If there is no agreement between a principal and an agent regarding the amount for which the principal will compensate the agent, which of the following statements is true?

• A) It will be assumed that the agent agreed to work for free on a gratuitous basis.
• B) The agent will be allowed to set the price which will be enforced unless it is unconscionable.
• C) The principal will be allowed to set the price which will be enforced unless it is unconscionable.
• D) The court will appoint a magistrate to set the price.
• E) Compensation will be calculated according to the customary fee in the situation.

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Definitions:

Abstraction Categories

Classifications used to group concepts, objects, or ideas on the basis of shared properties or characteristics, often to simplify understanding and communication.

Superordinate Level

The highest, most general level of abstraction in categorization that groups together similar concepts or objects based on common attributes.

Basic Level

Represents the most general category at which objects are commonly identified, balancing the maximum differentiation from other categories with the highest within-category similarity.

Foreign Films

Movies produced outside of one’s own country, often in a different language and showcasing diverse cultures and storytelling techniques.