A Principal Will Not Be Liable to a Third Party

question 61

Multiple Choice

A principal will not be liable to a third party for a tort committed by an agent:

• A)unless the principal was legally nonexistent.
• B)unless the tort was committed within the scope of the agency relationship.
• C)if the agency agreement limits the principal's liability for the agent's tort.
• D)if the tort is also regarded as a criminal act.

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Definitions:

Import Goods

These are products brought into one country from another for sale.

Scarce Factors

Resources that are limited in availability and are constraint to economic production.

Capital

Refers to financial assets or physical resources that are used in producing goods or providing services.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than others.