Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Tennessee Affiliate Broker Exam involving salesperson affiliation and affiliate broker supervision. What should the licensee understand? (Item 75)
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. Understand that salespersons or agents generally act through a broker in a way that fits Tennessee exam practice.
- D. The affiliated licensee may handle the matter independently without broker responsibility.
Correct Answer
C. Understand that salespersons or agents generally act through a broker in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because salesperson affiliation requires candidates to understand that salespersons or agents generally act through a broker. The Tennessee 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: salesperson affiliation