Which of the following is a course of action for a principal if an agent is found competing with him or her?

Question

Quizplus · Accepted Answer

If an agent is found competing with the principal, the principal can recover profits made by the agent. This is because the agent owes a duty of loyalty to the principal and cannot use confidential information or trade secrets to compete with the principal. Recovering profits is a way to deter the agent from engaging in such conduct in the future. Option A is incorrect because damages can only be recovered while the agency is still in effect. Option C is incorrect because the principal may not want to purchase the agent's competing venture. Option D is incorrect because the principal can recover for lost sales due to the agent's competing venture.

Which of the Following Is a Course of Action for a Principal