Which of the Following Is True Regarding Liability of a Principal

question 107

Multiple Choice

Which of the following is true regarding liability of a principal to an agent based on a contract an agent makes with a third party that expressly excludes the principal from the contract?

• A) The principal is liable to the agent because it is unconscionable to exclude a principal from a contract.
• B) The principal is liable to the agent only if the principal is an unidentified principal.
• C) The principal is liable to the agent only if the principal is a partially disclosed principal.
• D) The principal is liable to the agent unless the principal gave the agent authority in writing to make the agreement with the third party.
• E) The principal is not liable to the agent.

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Definitions:

Competitive Orientation

An organization's strategy in responding to and navigating competitive environments, focusing on how it positions itself against rivals.

Strategic Planning Process

A systematic approach to defining a business's strategy, directions, and decision-making process for achieving long-term goals.

Ethical Requirements

Standards and guidelines for moral conduct that individuals and organizations are expected to follow.

Social Responsibility

Social Responsibility is the obligation of businesses to make decisions and take actions that are beneficial for the welfare and interests of society as well as the organization.