An Agent Directed by the Principal to Commit a Tort

question 24

True/False

An agent directed by the principal to commit a tort does not remain liable for his own conduct and hence,is not obligated to repay the principal.

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Definitions:

Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost price.

Return on Investment

A measure used to evaluate the efficiency of an investment, calculated as net profit divided by the cost of the investment.

Markup

The increment added to the acquisition cost of products to address company overheads and earn profit.

Absorption Costing

An accounting method where all manufacturing costs, including both variable and fixed, are absorbed by the products.