Which of the Following Is Correct with Respect to an Agent's

question 72

Multiple Choice

Which of the following is correct with respect to an agent's performance of his or her duties?

• A)The agent must never compete with the principal.
• B)The agent must never take advantage of the third party.
• C)The principal need not reimburse the agent for any reasonable expenses incurred in the process of performing the agency responsibilities.
• D)When an agent fails to act in the best interest of the principal and is an independent contractor,this is just cause for constructive dismissal.
• E)The agent may profit at the expense of the principal if the agent acquires some previously unknown information.

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Definitions:

CIF

"Cost, Insurance, and Freight," a term used in international shipping agreements where the seller is responsible for the transportation costs, insurance, and freight charges to the designated port.

Insurance

A contract in which the insured party makes payments to the insurer in exchange for the insurer’s promise to make payment or transfer goods to another party in the event of injury or destruction to the insured party’s property or life.

Shipping Term

Conditions that outline the delivery arrangements and responsibilities between buyers and sellers, often specified in contracts.

FAS

A term in international commerce, standing for "Free Alongside Ship," indicating that the seller is responsible for the delivery of goods to a named port alongside a vessel.