Business Law Practice Test

The primary rights of an agent include the right to be compensated, to receive indemnification, and to reimbursement for expenses incurred while acting on behalf of the principal. Compensation refers to the payment for services rendered as outlined in the agency agreement. Indemnification protects the agent from liability that arises while performing their duties, ensuring that they are not held personally responsible for actions taken in good faith for the principal's benefit. Reimbursement covers any necessary expenses that the agent incurs while executing their duties, reinforcing the principle that the agent should not suffer financially while acting on behalf of the principal.

The other options do not represent the core rights of an agent. The right to make unilateral decisions without repercussions suggests a lack of accountability, which contradicts the agent's role as a fiduciary who must act in the best interest of the principal. The notion of profiting from side agreements without the principal's consent could lead to conflicts of interest and breaches of fiduciary duty, which is not a typical right of an agent. Lastly, although agents may have the ability to terminate their agency agreements, this is not a primary right; termination is generally subject to specific conditions and mutual agreements, reflecting the collaborative nature of agency relationships.