The concept of conflict of interest as it relates to the law of agency includes which of the following?
A) An agent may take a position that conflicts with the principal only if the principal, with full knowledge of all the facts, consents.
B) An agent may not represent her principal in a transaction in which the agent has a personal interest.
C) An agent may not act on behalf of adverse parties to a transaction without both principals' approval of the dual agency.
D) All of these represent conflicts of interest.

Question

Quizplus · Accepted Answer

Each choice (A, B, and C) describes a situation that could lead to a conflict of interest in the law of agency. Agents must act in the best interest of their principals, and these scenarios require transparency, consent, or avoidance to maintain that fiduciary duty.

The Concept of Conflict of Interest as It Relates to the Law