An Agent Can Become Liable While Acting for the Principal

question 379

Multiple Choice

An agent can become liable while acting for the principal if:

• A) The agent violates any duties owed to the principal.
• B) The agent exceeds actual authority.
• C) The agent assumes liability for a particular transaction,
• D) All of the above.
• E) None of the above.

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Definitions:

Deindividuation

Deindividuation is a psychological state where an individual loses their self-awareness and sense of individuality, often leading to disinhibited behavior.

Submerged

This term relates to something being beneath the surface of water or another liquid; it can also metaphorically refer to something being hidden or not visible at the surface level.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires.