Certification in Supplier Diversity Practice Exam

What characterizes a special agent?

1. Involved in ongoing activities

2. Authorized for a single transaction

3. Acts independently from the principal

4. Handles multiple clients

The correct answer is: Authorized for a single transaction

A special agent is characterized by being authorized to act on behalf of a principal for a specific, singular transaction or purpose. This authority is limited in scope, meaning that the agent's power is confined to that particular engagement. Once the transaction is completed, the agency relationship typically comes to an end. In contrast, a general agent would handle ongoing responsibilities and manage multiple transactions or duties for the principal over a longer term. The special agent’s role does not extend beyond the specific task for which they were appointed, underscoring the focused nature of their authority. Additionally, while a special agent operates under guidelines set by the principal, they do not act entirely independently; their actions must align with the principal's interests during the transaction. Therefore, the unique and limited nature of the authority to conduct just one transaction or task defines what a special agent is.