Under a Principal/agent Relationship, the Agent Faces High Costs of Determining

question 45

True/False

Under a principal/agent relationship, the agent faces high costs of determining whether the principal is actually making efforts to the extent the agent expects.

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Definitions:

Strict Liability

A legal doctrine that holds a party responsible for their actions or products without the need to prove negligence or fault.

Standard Rationale

A common or accepted reason or logic behind a decision, action, or rule, typically one that is widely accepted within a specific field or discipline.

Liable Irrespective

The notion of being liable irrespective means being legally responsible for something regardless of certain conditions or factors that might otherwise influence or excuse the liability.

Intervening Cause

An event that occurs after a defendant's initial act of negligence and contributes to the harm, potentially relieving the defendant of some liability.