#1
What is a fiduciary relationship?
A relationship between friends
A relationship based on trust and confidence
A legal contract
A business partnership
#2
Which of the following is NOT a characteristic of a fiduciary relationship?
Trust
Confidentiality
Independence
Loyalty
#3
What is a fiduciary duty?
A moral obligation
A contractual obligation
A legal obligation
An ethical obligation
#4
Which of the following is NOT a fiduciary relationship?
Attorney-client
Doctor-patient
Employee-employer
Agent-principal
#5
Which of the following is NOT a fiduciary relationship recognized by law?
Parent-child
Trustee-beneficiary
Guardian-ward
Banker-customer
#6
What is the duty of care in a fiduciary relationship?
To act with reasonable skill, diligence, and prudence
To disclose all information to the beneficiary
To prioritize personal interests over the beneficiary's
To avoid any conflicts of interest
#7
Which legal principle prohibits fiduciaries from exploiting their position for personal gain?
Doctrine of Privity
Doctrine of Utmost Good Faith
Doctrine of Self-Dealing
Doctrine of Consideration
#8
Which legal doctrine requires fiduciaries to act in the best interests of their beneficiaries?
Doctrine of Privity
Doctrine of Consideration
Doctrine of Utmost Good Faith
Doctrine of Ultra Vires
#9
What is the primary purpose of fiduciary law?
To regulate contracts
To protect vulnerable parties
To promote competition
To enforce property rights
#10
What is the difference between a fiduciary relationship and a contractual relationship?
In a fiduciary relationship, there is no legal obligation.
A contractual relationship involves a formal written agreement.
A fiduciary relationship involves trust and confidence.
A contractual relationship has no duty of care.
#11
What is the primary duty of loyalty in a fiduciary relationship?
To act in the best interest of the fiduciary
To prioritize personal gain over the beneficiary
To avoid conflicts of interest
To disclose all information to the beneficiary
#12
In the context of fiduciary powers, what does 'ultra vires' mean?
Beyond the authority granted
Within the authority granted
Exercised with extreme caution
Following strict regulations
#13
What is the consequence of a fiduciary breaching their duty?
No consequences
Legal action by the beneficiary
A warning letter
A fine paid to the government
#14
What legal concept allows a beneficiary to sue a fiduciary for a breach of duty?
Privilege
Privity
Remedy
Standing
#15
In what circumstance might a fiduciary be allowed to engage in self-dealing?
When it benefits the fiduciary
When it doesn't harm the beneficiary
When approved by the court
Never
#16
What is the consequence of a fiduciary engaging in self-dealing without court approval?
No consequence
Removal from fiduciary position
A warning letter
A fine paid to the government
#17
Which legal concept protects a fiduciary from liability for actions taken in good faith?
Impossibility defense
Doctrine of Privity
Doctrine of Good Faith
Estoppel