Agency and License Law Practice Question
Question
A salesperson notices a possible compliance problem for the Tennessee Affiliate Broker Exam involving confidentiality and Tennessee Real Estate Commission. Which statement is the best answer? (Item 6)
Answer choices
- A. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- B. Protect confidential client information unless disclosure is authorized or required in a way that fits Tennessee exam practice.
- C. A verbal understanding always replaces a written real estate requirement.
- D. The safest practice is to avoid written documentation so fewer questions are raised later.
Correct Answer
B. Protect confidential client information unless disclosure is authorized or required in a way that fits Tennessee exam practice.
Explanation
The correct answer is B because confidentiality requires candidates to protect confidential client information unless disclosure is authorized or required. 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: confidentiality