AgencyIntermediateAlabama Exam

An agent who follows a client's instructions to the letter, even when those instructions may not be in the client's best interest, is fulfilling the duty of:

ALoyalty
BObedienceCorrect
CDisclosure
DAccounting

Why Obedience Is Correct

Answer B: Obedience

The duty of obedience requires an agent to follow the lawful instructions of their principal, even if the agent disagrees with those instructions.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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