When Liability Is Imposed on the Principal for the Unauthorized

question 79

Multiple Choice

When liability is imposed on the principal for the unauthorized torts of an agent, it is called:

• A) fiduciary duty
• B) indemnification
• C) agent respondeat
• D) third-party rights, duties, and liabilities
• E) none of the other choices

Analyze the role of past consideration and forbearance in contract law.

Identify the factors the courts consider when determining the adequacy of consideration.

Understand the impact of contractual disputes on the enforceability of agreements concerning liquidated and unliquidated debts.

Comprehend the conditions under which an accord and satisfaction can be used to resolve disputes.

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Definitions:

Cost Of Goods Available

The total cost of all merchandise or materials available for sale or use, including beginning inventory plus purchases.

Purchase Returns

Goods returned by the buyer to the supplier due to defects, inaccuracies in shipment, or other discrepancies.

Allowances

A deduction from the gross amount on an invoice by the buyer for goods purchased or to cover some type of shortcoming.

Purchase Discounts

Reductions in the price of goods or services allowed by the seller for early payment by the buyer.