Which of the Following Is True Regarding an Agent's Liability

question 79

Multiple Choice

Which of the following is true regarding an agent's liability when the agent commits a tort while acting as an agent for a principal?

• A) The agent is personally liable only if the agent was on a mission for an unidentified principal.
• B) The agent is personally liable only if the agent was on a mission for an unidentified principal or a partially disclosed principal.
• C) The agent is liable regardless of the classification of the principal or the liability of the principal.
• D) The agent is not liable if the principal is liable.
• E) The agent is not liable unless the principal is insolvent.

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Definitions:

Materiality

Materiality refers to the significance of information or facts that could influence decisions made by users, such as investors or shareholders; it is a key concept in accounting and auditing.

Misrepresentation

A false statement of fact made by one party to another party, which induces the latter party into a contract.

Concept

An abstract idea or a general notion that represents the fundamental characteristics of what it describes.

Tertiary

Pertains to the third level or stage in a series; often refers to post-secondary education or the service sector in the economy.