Under the Third Restatement, an Agent Representing an Undisclosed Principal

question 81

Multiple Choice

Under the Third Restatement, an agent representing an undisclosed principal is discharged from liability if the third party:

• A) gets a satisfied judgment against the principal.
• B) becomes aware of the principal.
• C) gets a judgment against the agent.
• D) He is never discharged from liability.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the U.S. to govern financial reporting and ensure consistency.

Accounting Standards

Rules and guidelines used in the preparation and presentation of financial statements to ensure accuracy, completeness, and consistency.

Asset

Anything of value owned by a company.

Business

All profit-seeking activities and enterprises that provide goods and services necessary to an economic system.