Question

Carlos instructs his sales agent, Edgar, not to sell on credit to Andrew because Carlos has experienced problems collecting from Andrew for prior purchases. Edgar sells on credit to Andrew, who pays properly. Has Edgar violated any obligation to Carlos?

A. He has not violated any obligation since Andrew paid properly.

B. He has violated the duty to exercise reasonable judgment.

C. He has not violated any obligation since Edgar did not evaluate Andrew's credit worthiness correctly.

D. He has violated the duty to obey all instructions of the principal.

Answer

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