Fair Housing and Practice Practice Question
Question
An investor is comparing two properties involving professional ethics. Which response best protects the client and keeps the transaction compliant? (Item 14)
Answer choices
- A. It requires the licensee to favor the other party over the licensee’s own client.
- B. Distinguish lawful competition and honest dealing from misleading conduct.
- C. It is primarily a tax rule with no effect on brokerage practice.
- D. It removes the need for written disclosure if the licensee believes the client already knows.
Correct Answer
B. Distinguish lawful competition and honest dealing from misleading conduct.
Explanation
The correct answer is B because professional ethics requires candidates to distinguish lawful competition and honest dealing from misleading conduct. 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: professional ethics