Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Michigan Real Estate Salesperson Exam involving liquidated damages and agency and trust-money compliance. Which statement is most accurate for exam purposes? (Item 157)
Answer choices
- A. Identify pre-agreed damages provisions subject to applicable law in a way that fits Michigan exam practice.
- B. The party who complains first automatically receives the remedy requested.
- C. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- D. The client’s preference eliminates the need to disclose known material facts.
Correct Answer
A. Identify pre-agreed damages provisions subject to applicable law in a way that fits Michigan exam practice.
Explanation
The correct answer is A because liquidated damages requires candidates to identify pre-agreed damages provisions subject to applicable law. 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: easy
- Domain: Contracts, Finance, and Transfer
- Objective: liquidated damages