Which of the Following Is True of Tort Liability for Principals

question 125

Multiple Choice

Which of the following is true of tort liability for principals and agents?

• A)A principal is responsible for the tortious conduct of an agent regardless of whether the conduct occurs within the scope of the agency.
• B)A principal is responsible for the tortious conduct of an agent regardless of whether the conduct occurs within the course of the agency.
• C)An agent is liable for the principal's tortious conduct if he or she participates in it.
• D)An agent and a principal cannot be held responsible for the same tort.

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Definitions:

Revolving Loan

A loan that provides the borrower with the ability to draw down, repay, and re-borrow funds up to a designated amount over a given period.

Prime Interest

The interest rate that commercial banks charge their most creditworthy customers, often used as a reference rate for loans.

Float

The time difference between writing a check and the actual withdrawal of funds from the bank account, or in securities trading, it's the number of shares available for trading by the general public.

Fair Value

An estimate of the price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.