Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Michigan Real Estate Salesperson Exam involving advertising compliance and Michigan occupational licensing regulation. Which statement is the best answer? (Item 64)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. The requirement matters only when the buyer obtains institutional financing.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Avoid misleading ads and include required brokerage or license identification in a way that fits Michigan exam practice.
Correct Answer
D. Avoid misleading ads and include required brokerage or license identification in a way that fits Michigan exam practice.
Explanation
The correct answer is D because advertising compliance requires candidates to avoid misleading ads and include required brokerage or license identification. The Michigan reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: hard
- Domain: Agency and License Law
- Objective: advertising compliance