Which of the following is NOT an example of a fiduciary duty?

Prepare for the Champions Law of Agency Test. Use flashcards and multiple choice questions with hints and explanations to boost readiness. Get exam-ready!

A fiduciary duty is an obligation owed by one party to act in the best interest of another. This relationship is built on trust, requiring the agent to prioritize the principal's interests above their own. The correct answer highlights the concept of unilateral decisions that benefit the agent as not being an example of a fiduciary duty.

When an agent makes decisions solely for their own benefit, it undermines the fundamental principle of loyalty and trust that is essential in a fiduciary relationship. Instead, the agent is expected to take actions that benefit the principal, ensuring that their choices align with the principal's needs and goals. The other choices—providing full disclosure of transactions, acting with loyalty, and keeping the principal informed—are all fundamental components of a fiduciary duty, focusing on transparency, loyalty, and communication, which are vital to maintaining the trust inherent in such relationships.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy