Hadi knew that he wanted to buy a car, but he also knew that he knew almost nothing about vehicles.His friend, Devon, in contrast, was an experienced mechanic.Devon agreed, in exchange for $250, to search the marketplace and obtain a suitable car for Hadi.Within a couple of days, Devon learned that Nadia was offering to sell two 2015 Honda Civics for a total price of $40 000.The blue Civic was in great shape and was absolutely perfect for Hadi.The yellow Civic, which Nadia called "a real lemon," required a complete engine replacement.Devon bought both cars, but after thinking about the situation for a night, kept the blue one for himself.The next day, Devon transferred the yellow car to Hadi in exchange for $20 000, which Devon said was Hadi's "fair share of the price." Hadi has now discovered the problem and wants to sue Devon.Which of the following statements is most likely to be TRUE?

Question

Quizplus · Accepted Answer

Devon breached his fiduciary duty as an agent because he had a conflict of interest when he kept the better car for himself and sold Hadi the lemon. He should have acted in Hadi's best interest and disclosed all material facts about the cars before completing the transaction. The fact that Devon paid a fair price to Nadia for the two cars is irrelevant, as it does not excuse his breach of duty as an agent.

Hadi Knew That He Wanted to Buy a Car, but He