has experienced problems collecting from Andrew for prior purchases. Edgar sells on
credit to Andrew, who pays properly. Has Edgar violated any obligation to Carlos?
A. No, Edgar has not violated any obligation since Andrew paid properly.
B. Yes, Edgar has violated the duty to exercise reasonable judgment.
C. No, Edgar has not violated any obligation, since Edgar did not evaluate Andrew's
credit worthiness correctly.
D. Yes, Edgar has violated the duty to obey all instructions of the principal.
In compliance with the agency contract and the fiduciary relationship, various
obligations are imposed on the agent. One of the obligations generally involves the duty
to obey all instructions and be loyal to the principal. In obeying the instructions of the
principal, the agent is duty-bound to remain within the scope of authority (i.e., the range
of acts authorized by the principal).
____________ that have not been fully performed by both parties, may be repudiated
by a minor at any time.
A. Contracts for necessaries
B. In pari delicto contracts
C. Executed contracts
D. Executory contracts
Stan commits securities fraud and takes $5,000,000 from a variety of investors. Stan is
convicted of a crime and then sued by the investors. Stan files for bankruptcy. What
relief will the bankruptcy filing grant Stan?
A. Automatic stay on all cash advances paid to a creditor under an open-ended credit
B. Automatic stay and discharge of any debt created with the securities fraud
C. Automatic stay, but no discharge of any debt created by the securities fraud
D. Automatic stay and discharge of all debts incurred