Why can an agent generally not take an opportunity meant for the principal? Is an agent ever permitted to take such an opportunity? Give an example of an agent's violation of the duty of loyalty
What will be an ideal response?
An agent cannot personally usurp an opportunity that belongs to the principal. A third-party offer to an agent must be conveyed to the principal. The agent cannot appropriate the opportunity for herself unless the principal rejects it after due consideration. If the agent does so, the principal can recover the opportunity from the agent. But the agent can take the opportunity with the consent of the principal. For instance, consider an agent who works for a principal that is in the business of real estate development. The principal is looking for vacant land to purchase to develop. A third party who owns and wants to sell his vacant land tells an agent of the principal of the availability of the land. The agent, without informing the principal, purchases the land for his own use. This is a violation of the agent's duty of loyalty.
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In Canada, federal legislation prohibits firms from selling to two or more competing buyers on an ongoing basis, within a short period of time, goods of like grade and quality at different prices where the result would be to lessen competition in the marketplace. What is this infraction known as?
a. resale price maintenance b. predatory pricing c. price discrimination d. deceptive pricing
When designing a study, a researcher is wondering if she should ask respondents their age. She is not sure if she would need that information to do any analysis later in the research process. She is trying to:
a. Determine of the correct unit of analysis for her study. b. Conduct of a situation assessment for her study. c. Determine of the relevant variables for her study. d. Identify and separation of symptoms for her study. e. confirm the information value.