Asked by razan osman on Apr 27, 2024

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Verified

Which of the following is not a breach of an agent's duty of obedience?

A) Entering into an unauthorized contract for which his or her principal is then liable.
B) Committing a tort for which the principal is now liable.
C) Improperly delegating her authority.
D) Not following a principal's instruction to misrepresent the quality of a competitor's goods to a potential customer.

Duty Of Obedience

The requirement for directors, officers, and agents of a corporation to act within the scope of their authority and in the best interest of the corporation.

Unauthorized Contract

A contract made by a person who lacks the authority to do so, potentially making it unenforceable against the presumed principal.

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, resulting in injury or harm to someone and constituting the basis for a claim by the injured party.

  • Identify the range of responsibilities an agent has towards a principal, such as allegiance, compliance, and diligence.
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Verified Answer

EA
Emily AshbyApr 29, 2024
Final Answer :
D
Explanation :
An agent's duty of obedience requires the agent to act in the principal's best interest within the scope of their authority. Not following a principal's instruction to misrepresent the quality of a competitor's goods is not a breach of this duty, as it would involve unethical or illegal actions, which are not in the principal's legitimate best interests.