Which of the Following Is True Regarding Respondeat Superior

question 50

Multiple Choice

Which of the following is true regarding respondeat superior?

• A) Under that theory,a principal may be liable for not only the contracts but also the torts of its agents.
• B) Under that theory,a principal may be liable for only the contracts of its agents,not the torts.
• C) Under that theory,a principal may be liable for only the torts of its agents,not the contracts.
• D) Under that theory,a principal may not be held liable for either the contracts or torts of its agent unless the principal expressly authorizes the agent's actions.

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Definitions:

Substantive Unconscionability

Unconscionability that derives from one-sided, unjust, or overly harsh substance in a contract.

Maximum Interest Rate

The highest rate of interest that can be charged on loans or credit, often regulated by law to prevent usury.

Business Tort

A wrongful act, other than a breach of contract, that results in injury or damage to another's business interests.

Implied-In-Fact Contract

A contract formed by the actions and circumstances of the parties involved, rather than written or spoken words.