Fair Housing and Practice Practice Question
Question
A license applicant is studying a California practice scenario involving market allocation. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 100)
Answer choices
- A. It requires the licensee to favor the other party over the licensee’s own client.
- B. It is primarily a tax rule with no effect on brokerage practice.
- C. It removes the need for written disclosure if the licensee believes the client already knows.
- D. Recognize illegal agreements to divide territories or customers.
Correct Answer
D. Recognize illegal agreements to divide territories or customers.
Explanation
The correct answer is D 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: hard
- Domain: Fair Housing and Practice
- Objective: market allocation