Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Pennsylvania Real Estate Salesperson Exam involving advertising compliance and consumer notice concepts. Which answer best reduces risk? (Item 82)
Answer choices
- A. The rule applies only to commercial transactions and never to residential transactions.
- B. Avoid misleading ads and include required brokerage or license identification in a way that fits Pennsylvania exam practice.
- C. Client funds may be mixed with business funds if the broker reconciles the account later.
- D. The issue can be ignored if the parties want to close quickly.
Correct Answer
B. Avoid misleading ads and include required brokerage or license identification in a way that fits Pennsylvania exam practice.
Explanation
The correct answer is B 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: medium
- Domain: Agency and License Law
- Objective: advertising compliance