Match Each Statement with the Correct Term Below

question 3

Multiple Choice

Match each statement with the correct term below.
-agent

• A)The duty that requires an agent to act in the principal's affairs only as authorized by the principal and to obey all lawful instructions.
• B)The requirement that an agent maintain and provide the principal with a true and complete record of money or other property that the agent receives or expends on behalf of the principal.
• C)Person authorized to act on another's behalf.
• D)Principal's duty to pay for losses the agent incurred while acting as directed by the principal.
• E)The requirement that an agent act with reasonable care and skill in performing the work for which she is employed.
• F)Written, formal appointment of an agent.
• G)Person who agrees to do a particular job for another but who is not subject to the other's control over the manner and means of performance.
• H)Indirect legal responsibility for the acts of another.
• I)A form of liability without fault in which the principal is held liable for the agent's unauthorized tort.
• J)Power that is either express or implied and that depends upon consent manifested by the principal to the agent.
• K)A principal of whom a third party has no knowledge, because he has no reason to believe the agent is acting for a principal.
• L)An irrevocable agency relationship.
• M)Power that is based upon acts or conduct of the principal which manifests to a third party that the agent has power and upon which the third party justifiably relies.
• N)A principal that a third party knows exists but whose identity is unknown to the third party; unidentified principal.
• O)The confirmation or affirmance by one person of a prior unauthorized act performed by another who is, or purports to be, his agent.

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Definitions:

Business Judgment Rule

A legal principle that protects the decisions made by the board of directors of a corporation as long as those decisions are made in good faith, with due care, and in the best interests of the corporation.

Breach

A breach is the violation or breaking of a law, duty, or obligation, either by engaging in an action that is prohibited or failing to perform a required act.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when managing financial assets or decisions for them.

Quorum

The minimum number of members that must be present at a meeting to make the proceedings of that meeting valid.