Asked by Corinna Vogel on Jul 11, 2024
Verified
Which of the following is true regarding the status of an agent as a fiduciary?
A) Although the principal is a fiduciary, an agent is not a fiduciary.
B) An agent is a fiduciary only if the principal and agent agreed by written contract that the agent is a fiduciary.
C) An agent is a fiduciary only if the principal and agent agreed by written or oral contract that the agent is a fiduciary.
D) An agent is only a fiduciary to the principal only if a transaction in excess of $10,000 is involved.
E) An agent is a fiduciary to the principal.
Fiduciary
A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients' interest ahead of their own, with a duty to preserve good faith and trust.
Written Contract
A legally binding agreement between parties that is expressed in written form rather than verbally.
- Analyze the role of fiduciary duty within agency law and its impact on the agent-principal relationship.
Verified Answer
NR
natasha reddingJul 18, 2024
Final Answer :
E
Explanation :
An agent is considered a fiduciary to the principal, which means the agent has a legal obligation to act in the principal's best interest. This status does not depend on the existence of a written or oral contract specifying the fiduciary nature, nor does it depend on the value of a transaction.
Learning Objectives
- Analyze the role of fiduciary duty within agency law and its impact on the agent-principal relationship.