Asked by Arlyn Abreu on Jul 23, 2024
Verified
Carlos instructs his sales agent,Edgar,not to sell on credit to Andrew because Carlos has experienced problems collecting from Andrew for prior purchases.Edgar sells on credit to Andrew,who pays properly.Has Edgar violated any obligation to Carlos?
A) No,Edgar has not violated any obligation since Andrew paid properly.
B) Yes,Edgar has violated the duty to exercise reasonable judgment.
C) No,Edgar has not violated any obligation,since Edgar did not evaluate Andrew's credit worthiness correctly.
D) Yes,Edgar has violated the duty to obey all instructions of the principal.
Duty To Obey
A legal or moral obligation to follow the laws or commands of a given authority.
Credit Worthiness
An assessment of a borrower's ability to repay debts based on their financial history, credit score, and other factors indicating financial stability.
- Understand the obligations agents have towards their principals, including obedience and the exercise of reasonable judgment.
Verified Answer
KD
Kaylynn DouyonJul 23, 2024
Final Answer :
D
Explanation :
Edgar has violated the duty to obey all instructions of the principal, as he did not follow Carlos's specific instruction not to sell on credit to Andrew, regardless of the outcome of the transaction.
Learning Objectives
- Understand the obligations agents have towards their principals, including obedience and the exercise of reasonable judgment.