#1
What is a fiduciary relationship?
A relationship based on trust and confidence
ExplanationTrust-based relationship.
#2
Which of the following is NOT a characteristic of a fiduciary relationship?
Independence
ExplanationIndependence is not a characteristic.
#3
What is a fiduciary duty?
A legal obligation
ExplanationLegal obligation.
#4
Which of the following is NOT a fiduciary relationship?
Employee-employer
ExplanationEmployee-employer relationship.
#5
Which of the following is NOT a fiduciary relationship recognized by law?
Parent-child
ExplanationNon-fiduciary relationship.
#6
What is the duty of care in a fiduciary relationship?
To act with reasonable skill, diligence, and prudence
ExplanationRequirement of reasonable diligence.
#7
Which legal principle prohibits fiduciaries from exploiting their position for personal gain?
Doctrine of Self-Dealing
ExplanationProhibition of exploiting position.
#8
Which legal doctrine requires fiduciaries to act in the best interests of their beneficiaries?
Doctrine of Utmost Good Faith
ExplanationObligation to act in beneficiary's best interests.
#9
What is the primary purpose of fiduciary law?
To protect vulnerable parties
ExplanationProtection of vulnerable parties.
#10
What is the difference between a fiduciary relationship and a contractual relationship?
A fiduciary relationship involves trust and confidence.
ExplanationInvolvement of trust and confidence.
#11
What is the primary duty of loyalty in a fiduciary relationship?
To act in the best interest of the fiduciary
ExplanationObligation to act in fiduciary's best interest.
#12
In the context of fiduciary powers, what does 'ultra vires' mean?
Beyond the authority granted
ExplanationActing beyond granted authority.
#13
What is the consequence of a fiduciary breaching their duty?
Legal action by the beneficiary
ExplanationLegal repercussions.
#14
What legal concept allows a beneficiary to sue a fiduciary for a breach of duty?
Standing
ExplanationRight to sue for breach.
#15
In what circumstance might a fiduciary be allowed to engage in self-dealing?
When approved by the court
ExplanationCourt-approved self-dealing.
#16
What is the consequence of a fiduciary engaging in self-dealing without court approval?
Removal from fiduciary position
ExplanationRemoval from position.
#17
Which legal concept protects a fiduciary from liability for actions taken in good faith?
Doctrine of Good Faith
ExplanationProtection against liability for good faith actions.