Agency and License Law Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Pennsylvania Real Estate Salesperson Exam involving advertising compliance and state agreement and disclosure practice. Which statement is most accurate for exam purposes? (Item 208)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. Avoid misleading ads and include required brokerage or license identification in a way that fits Pennsylvania exam practice.
Correct Answer
D. Avoid misleading ads and include required brokerage or license identification in a way that fits Pennsylvania 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 Pennsylvania 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