Asked by Aqualaquisha Lebron on Jul 07, 2024
Verified
An agent's duty of loyalty means she likely cannot act for:
A) more than one principal.
B) two principals in the same transaction.
C) more than one year for the same principal.
D) an undisclosed principal.
Duty Of Loyalty
A duty that states managers must place the corporation’s interests above their own.
Undisclosed Principal
A person, in a transaction conducted by an agent, whose existence and identity are unknown to the third party.
- Comprehend the duty of loyalty an agent owes to their principal and the implications of violating this duty.
Verified Answer
YS
Yogesh SachdevaJul 14, 2024
Final Answer :
B
Explanation :
An agent's duty of loyalty means she cannot act for two principals in the same transaction. This would create a conflict of interest, as the agent may not be acting solely in the best interests of each party.
Learning Objectives
- Comprehend the duty of loyalty an agent owes to their principal and the implications of violating this duty.