Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Oregon Real Estate Broker Exam involving confidentiality and seller property disclosure awareness. Which response best applies the rule? (Item 42)
Answer choices
- A. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- B. Protect confidential client information unless disclosure is authorized or required in a way that fits Oregon exam practice.
- C. The requirement matters only when the buyer obtains institutional financing.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
B. Protect confidential client information unless disclosure is authorized or required in a way that fits Oregon exam practice.
Explanation
The correct answer is B because confidentiality requires candidates to protect confidential client information unless disclosure is authorized or required. The Oregon 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: medium
- Domain: Agency and License Law
- Objective: confidentiality