Asked by Miquan Patton-Martin on Jun 26, 2024
Verified
Kim hires Kyle to sell bike locks for her.She orders Kyle to tell potential customers that the bike locks are the world's strongest,even though this is not true.Does Kyle have a duty to obey Kim's instructions?
A) Yes,as long as he continues to act as her agent.
B) Yes,but he must make a disclaimer to potential customers that he is speaking for Kim.
C) No,because he is not a gratuitous agent and only gratuitous agents are obligated to follow a principal's instructions.
D) No,because a sales agent need not follow directions to misrepresent the quality of a principal's goods.
Misrepresent
To provide false or misleading statements, especially with the intention to deceive.
Gratuitous Agent
An individual who acts on behalf of someone else without expecting or receiving any compensation for their services.
Sales Agent
An individual or entity authorized to sell and promote products or services on behalf of a company, often earning a commission.
- Comprehend the responsibilities and fiduciary roles of agents towards their principals.
Verified Answer
CM
Cameron MichaelJun 30, 2024
Final Answer :
D
Explanation :
A sales agent need not follow directions to misrepresent the quality of a principal's goods.
Learning Objectives
- Comprehend the responsibilities and fiduciary roles of agents towards their principals.
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