A Principal Will Not Be Liable to a Third Party

question 61

Multiple Choice

A principal will not be liable to a third party for a tort committed by an agent:

• A)unless the principal was legally nonexistent.
• B)unless the tort was committed within the scope of the agency relationship.
• C)if the agency agreement limits the principal's liability for the agent's tort.
• D)if the tort is also regarded as a criminal act.

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Definitions:

Moral Principles

Fundamental beliefs about what is right, wrong, or ethical that guide behavior and decision-making.

Ethical Problem

A situation or decision-making process involving conflicting values, principles, or duties, leading to moral dilemmas.

Illusion of Control

The false belief that one has influence or control over outcomes that are actually determined by chance.

Consideration of Duties

The reflective process of thinking about one's obligations and responsibilities.