Agency and License Law Practice Question
Question
A license applicant is reviewing a practice scenario for the Tennessee Affiliate Broker Exam involving commission payment and affiliate broker supervision. Which statement is most accurate for exam purposes? (Item 32)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. Recognize that affiliated licensees are usually paid through their broker in a way that fits Tennessee exam practice.
Correct Answer
D. Recognize that affiliated licensees are usually paid through their broker in a way that fits Tennessee exam practice.
Explanation
The correct answer is D because commission payment requires candidates to recognize that affiliated licensees are usually paid through their 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: hard
- Domain: Agency and License Law
- Objective: commission payment