A principal is exposed to tort liability whenever a third person sustains a loss due to an agent's misrepresentation.

Name: A principal is exposed to tort liability whenever a third person sustains a loss due to an agent's misrepresentation.
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Quizplus · Accepted Answer

This is true. Whenever an agent makes a misrepresentation that causes a third person to suffer a loss, the principal may be held liable for the damages. This is known as tort liability.

A Principal Is Exposed to Tort Liability Whenever a Third