Identify the True Statement Concerning the Law of Principal and Agent

question 163

Multiple Choice

Identify the true statement concerning the law of principal and agent.

• A) An agent can never be liable to the third party himself while the principal will bear no such liability.
• B) Agency is only created by way of a contract.
• C) The principal and his agent owe each other the same duties.
• D) An agent with no express authority can never bind his principal into a contract with a third party.
• E) An agent who puts himself in a position where his interests conflict with those of his principal is in breach of his duties even though no actual harm comes to his principal.

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Definitions:

Standardization

The process of developing and implementing technical standards to ensure that different processes or products are consistent and compatible.

Experimental Conditions

The controlled settings and variables manipulated by researchers in an experiment to investigate their effects on outcomes.

Correlation Analyses

Statistical methods used to determine the relationship and strength between two or more variables.

Normal Curve

A bell-shaped curve that represents the distribution of a set of data where most occurrences take place in the middle of the range.