Which of the Following Is True of a Principal's Duty

question 75

Multiple Choice

Which of the following is true of a principal's duty of indemnity?

• A)The principal does not have to indemnify the agent for authorized payments made on the principal's behalf as the payments were undertaken in the course of the agent's work.
• B)The principal must indemnify the agent for tort damages resulting from authorized conduct that the agent did not believe was tortious.
• C)The principal is required to indemnify an agent even for losses resulting from the agent's negligence.
• D)The principal is required to indemnify an agent for losses resulting from unauthorized acts so long as the principal did not benefit from such behavior.

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Definitions:

Government Agency

An organization operated by the government to execute specific functions or provide services to the public.

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Price Level

An index that measures the average prices of goods and services in an economy over a period of time.

Given Up

The cost of forgoing the next best alternative when making a decision, also known as opportunity cost.