Agency and License Law Practice Question
Question
A buyer asks a licensee for an exam-focused explanation for the Tennessee Affiliate Broker Exam involving fiduciary disclosure and affiliate broker supervision. What should the licensee understand? (Item 23)
Answer choices
- A. The affiliated licensee may handle the matter independently without broker responsibility.
- B. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- C. Tell the client material information relevant to the representation in a way that fits Tennessee exam practice.
- D. The requirement matters only when the buyer obtains institutional financing.
Correct Answer
C. Tell the client material information relevant to the representation in a way that fits Tennessee exam practice.
Explanation
The correct answer is C because fiduciary disclosure requires candidates to tell the client material information relevant to the representation. 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: fiduciary disclosure