When an Agent Is Interacting with a Third Party on Behalf

question 33

Multiple Choice

When an agent is interacting with a third party on behalf of a principal, the principal is said to be disclosed if:

• A) the agent is a general agent who has authority to transact all of the business of the principal.
• B) an agent and a third party interacts and the third party has no notice that the agent is acting for a principal.
• C) the third party with whom the agent interacts knows the agent is acting on behalf of a principal, and he or she knows who the principal is.
• D) an agent and a third party interacts and the third party has notice that the agent is acting for a principal but it does not know the principal's identity.

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Definitions:

Staff Meeting

A gathering of employees led by their employer to discuss issues, progress, or objectives related to the workplace.

Stanley Milgram's Experiment

A series of social psychology experiments conducted in the 1960s to test obedience to authority, revealing people's willingness to follow orders even when they cause harm.

Obedience

Compliance with an order, request, or law or submission to another's authority.

Situational Factors

External influences that affect an individual's behavior, decisions, or performance in a given context or environment.