License Law and DRE Regulation Practice Question
Question
A first-time buyer asks for exam-focused clarification involving disciplinary grounds. The parties need a practical answer before moving forward. Which answer best applies the rule? (Item 57)
Answer choices
- A. Identify fraud, misrepresentation, dishonest dealing, or trust-fund violations as discipline triggers.
- B. It is controlled only by local custom rather than by law, contract, or professional duty.
- C. It is valid only when the buyer pays cash and no lender is involved.
- D. It prevents any later disclosure, even when new facts become known.
Correct Answer
A. Identify fraud, misrepresentation, dishonest dealing, or trust-fund violations as discipline triggers.
Explanation
The correct answer is A because disciplinary grounds requires candidates to identify fraud, misrepresentation, dishonest dealing, or trust-fund violations as discipline triggers. 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: License Law and DRE Regulation
- Objective: disciplinary grounds