Which of the following statements is true of the duty of loyalty?

Question

Quizplus · Accepted Answer

The duty of loyalty mandates that an agent act on behalf of one principal only to avoid conflicts of interest. A is incorrect because the duty of performance requires agents to perform the task to the best of their ability. B is incorrect because the duty of obedience assigns an agent the duty to follow all reasonable and lawful instructions of a principal. C is incorrect because the duty of accounting requires agents to keep accurate books that can be viewed by principals.

Which of the Following Statements Is True of the Duty