You Contract with Sal, a Stock Broker, to Act as Your

question 32

Multiple Choice

You contract with Sal, a stock broker, to act as your agent to buy stocks for you.You specifically instruct Sal that you only want him to buy stocks for you that have a good dividends payment history.Sal carelessly buys you some shares that have never paid dividends.Which of the following describes a legal basis upon which you could claim relief?

• A)Sal's breach of his fiduciary duty of care as an agent
• B)Sal's breach of your implied instructions
• C)Sal's defamation
• D)Sal's breach to the stock vendor's of his warranty of authority
• E)Sal's breach of duty of care owed to you

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Definitions:

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, preventing them from seeing potential alternative uses.

Mental Set

A tendency to approach situations in a certain way because that method worked in the past, possibly hindering the ability to find alternative solutions.

Cognitive Map

A mental representation of the layout of one’s environment.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.