Agency and License Law Practice Question

Question

An agent compares two similar exam concepts for the Tennessee Affiliate Broker Exam involving advertising compliance and Tennessee Real Estate Commission. Which response best applies the rule? (Item 10)

Answer choices

  1. A. A verbal understanding always replaces a written real estate requirement.
  2. B. Avoid misleading ads and include required brokerage or license identification in a way that fits Tennessee exam practice.
  3. C. The safest practice is to avoid written documentation so fewer questions are raised later.
  4. D. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.

Correct Answer

B. Avoid misleading ads and include required brokerage or license identification in a way that fits Tennessee exam practice.

Explanation

The correct answer is B because advertising compliance requires candidates to avoid misleading ads and include required brokerage or license identification. 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: advertising compliance

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