Question

Blue, a used car dealer, appointed Gage as an agent to sell Blueâs cars. Gage was authorized by Blue to appoint subagents to assist in the sale of the cars. Vond was appointed as a subagent. To whom does Vond owe a fiduciary duty?
A) Gage only.
B) Blue only.
C) Both Blue and Gage.
D) Neither Blue nor Gage.

Answer 1

Answer:

Letter c is correct!

Explanation:

This question addresses the hierarchy of an organization, which is the structure of task distribution in a company for business success. In the case exemplified in the question, Blue company is at the top of the company hierarchy because it was she who had the authority to name Gage. as an agent and authorized him to appoint Vond, a subagent to assist with car sales. Therefore Vond in Blue's hierarchical structure, owes a fiduciary duty to Blue and Gage.