Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Tennessee Affiliate Broker Exam involving salesperson affiliation and agency and property condition disclosure practice. Which statement is the best answer? (Item 93)
Answer choices
- A. Understand that salespersons or agents generally act through a broker in a way that fits Tennessee exam practice.
- B. The issue can be ignored if the parties want to close quickly.
- C. The rule applies only to commercial transactions and never to residential transactions.
- D. Client funds may be mixed with business funds if the broker reconciles the account later.
Correct Answer
A. Understand that salespersons or agents generally act through a broker in a way that fits Tennessee exam practice.
Explanation
The correct answer is A 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: easy
- Domain: Agency and License Law
- Objective: salesperson affiliation