Agency and License Law Practice Question
Question
A closing coordinator flags an issue before settlement for the Tennessee Affiliate Broker Exam involving disciplinary grounds and affiliate broker supervision. What should the licensee understand? (Item 88)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- D. Recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks in a way that fits Tennessee exam practice.
Correct Answer
D. Recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks in a way that fits Tennessee exam practice.
Explanation
The correct answer is D because disciplinary grounds requires candidates to recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks. 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: disciplinary grounds