Which of the Following Is Correct with Respect to an Agent's

question 192

Multiple Choice

Which of the following is correct with respect to an agent's performance of his duties?

• A) The agent may profit at the expense of the principal if the agent comes into some previously unknown information.
• B) The agent must never take advantage of the third party.
• C) The agent must never compete with the principal.
• D) When an agent fails to act in the best interest of the principal and is an independent contractor, this is just cause for constructive dismissal.
• E) The principal need not reimburse the agent for any reasonable expenses incurred in the process of performing the agency responsibilities.

---

Definitions:

Formal Legitimate Authority

The officially recognized power held by an individual or body, derived from their position within an organizational or legal structure.

Temporary Coalition

A short-term alliance or partnership between individuals or groups for a specific project or to achieve a particular goal.

Single Issue

Focused on or concerned with only one topic, problem, or aspect.

Action Agenda

A list or plan of actions to be taken to achieve specific goals.