A. When does an agency relationship come to an end? Explain your answer. b. Is an agency relationship ever irrevocable? Explain
a.
Because the authority of an agent is based upon the consent of the principal, the agency is terminated when consent is withdrawn or ceases to exist. Agency is terminated by: 1. acts of the parties, such as lapse of the agreed-upon time, purpose achieved, mutual agreement to terminate, revocation of authority by the principal, or renunciation by the agent; 2. by operation of law (impossibility-due to law change or because the subject matter of the agency is lost or destroyed; changed circumstances-when something occurs that has an unusual effect on the subject matter, agency may terminate; death or bankruptcy-agency usually terminated if either principal or agent files for bankruptcy or dies; war-if principal's and agent's countries are at war with each other, agency terminates). Termination of agency means the agent no longer has the actual authority to bind the principal.
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b. Yes, an agency coupled with an interest is irrevocable, even when death or incapacity of the principal occurs. The reason is that the interest is not created for the benefit of the principal. The agent has a security interest in the subject matter of the agency. An agency coupled with an interest is terminated by an event that discharges the obligation secured by it.
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Which of the following best describes kiting?
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A. Situational B. Deontological C. Hypernormal D. Cognitive
A proxy is a legal agreement a stockholder signs to allow someone else to vote for him or her at the corporation's annual meeting
Indicate whether this statement is true or false.