Which of the following is not an example of a fiduciary duty? A principal\'s dut
ID: 367711 • Letter: W
Question
Which of the following is not an example of a fiduciary duty?
A principal's duty to indemnify their agent.
An agent's duty not to notify the principal of material information.
The duty of principals to train agents to become principals.
The duty imposed by the Employee Retirement Income Security Act (ERISA) on pension fund managers to diversify the plan's investments to minimize the risk of large losses, unless such diversification is clearly imprudent.
An agent's duty not to self-deal.
John is working hard for his employer, Big Corp. He goes on a sales trip for Big, and while on the trip purchases food and lodging, which was impliedly authorized by Big. Which of the following identifies Big's fiduciary duty to pay John?
Duty to reimburse.
Duty to compensate.
Duty to account.
Duty of loyalty.
Duty to indemnify.
Explanation / Answer
1. Answer is Option b -An agent's duty not to notify the principal of material information.
A fiduciary duty is the highest standard of care. The person who has a fiduciary duty is called thefiduciary, and the person to whom he owes the duty, is typically referred to as the principal or the beneficiary. If an individual breaches the fiduciary duties, he or she would need to account for the ill-gotten profit.
2. Answer is Option A - Duty to reimburse.
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