An Agent Acting at the Direction of the Principal May

question 22

Multiple Choice

An agent acting at the direction of the principal may render the principal liable if the agent:

• A) delegates ministerial activities to other employees of the principal.
• B) commits a tort or crime.
• C) is acting on behalf of a nonexistent or incompetent principal.
• D) does not disclose the principal's name for the duration of the performance under the contract.

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Definitions:

Effective Rate

The actual annual interest rate that an individual earns or pays on a loan, investment, or financial product, accounting for the effect of compounding.

Monthly Compounding

Interest calculation method where interest is added to the principal sum every month.

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident.

Nominal Interest Rate

The stated or face interest rate on a loan or financial product, not accounting for inflation or compounding.