Question

Some jurisdictions consider managers liable only if they exceed their authority and the violation results in negligent or intentional conduct. This duty is referred to as the duty of:

1) diligence
2) loyalty
3) care
4) obedience

Answer 1

The duty of obedience holds managers accountable to act within their authority and the law, breaching which may lead to liability. It supports the hierarchy of authority, ensuring responsible conduct within any organization.

Step-by-step explanation:

The duty of obedience refers to a legal obligation of company directors and managers to act within the scope of their authority and in accordance with laws, regulations, and the company's bylaws. When a manager exceeds their authority, resulting in negligent or intentional conduct, they may be held liable for breaching this duty. This concept is pivotal in a hierarchy of authority, where each individual or office must answer to superiors within a bureaucratic system, adhering to the chain of command and being accountable for actions taken.

Moreover, the role of judgment is crucial when conflicting duties arise. In such scenarios, one must prioritize the more pressing obligation, exercising responsibility and, when possible, making reparations for any unfulfilled commitments. This balance between autonomy and accountability is needed to ensure that liberty is not misinterpreted as license, which can cause harm or disruption within a society or organization.