Fair Housing and Practice Practice Question
Question
A first-time buyer asks for exam-focused clarification involving market allocation. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 85)
Answer choices
- A. Recognize illegal agreements to divide territories or customers.
- B. It can be ignored if the transaction is expected to close quickly.
- C. It requires the licensee to favor the other party over the licensee’s own client.
- D. It is primarily a tax rule with no effect on brokerage practice.
Correct Answer
A. Recognize illegal agreements to divide territories or customers.
Explanation
The correct answer is A because market allocation requires candidates to recognize illegal agreements to divide territories or customers. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: medium
- Domain: Fair Housing and Practice
- Objective: market allocation