Under the "Procuring Cause" Rule, When the Agent Is the Primary

question 13

Multiple Choice

Under the "procuring cause" rule, when the agent is the primary factor in a purchase, the agent _____.

• A) may be entitled to a commission regardless of who eventually completes the sale
• B) is not entitled to compensation after termination of the agency relationship
• C) is not entitled to compensation if the principal completes the purchase
• D) may be entitled to compensation only if he completes the sale

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Definitions:

Pareto Optimal Allocation

A distribution of resources in an economy where improving the situation of one person necessitates detriment to another.

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods based on their level of satisfaction or utility.

Endowed

Refers to the initial allocation of goods, resources, or wealth an individual or entity possesses.

Units

Measurements used to quantify physical quantities, such as kilograms for mass or meters for length.