Which of the Following Is True If a Third Party

question 61

Multiple Choice

Which of the following is true if a third party comes to know of an undisclosed principal's identity and obtains a judgment against the principal?

• A) The agent remains liable to the third party.
• B) The agent remains liable to the third party unless the dispute involves an amount less than $1,000 in which case the agent is released.
• C) The agent remains liable to the third party unless the dispute involves an amount less than $500 in which case the agent is released.
• D) The agent is released from liability to the third party.
• E) The agent is released from liability to the third party unless the principal resides in another state and has not paid the judgment within 30 days from when it was rendered.

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Definitions:

Dividend Prospects

The potential for future dividend payments from investments, often assessed to evaluate the attractiveness of stocks.

Future Interest Rates

Expected rates of interest in the future, affecting everything from loans to investments.

Abnormal Return

The difference between the actual return of an investment and the expected return based on the risk and market's overall returns.

Sales Increase

An upward movement in the quantity sold or the revenue generated from the sale of a product or service over a specific period.