Contracts, Finance, and Transfer Practice Question
Question
A salesperson notices a possible compliance problem for the Tennessee Affiliate Broker Exam involving counteroffer and agency and property condition disclosure practice. What should the licensee understand? (Item 96)
Answer choices
- A. The party who complains first automatically receives the remedy requested.
- B. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
- C. The client’s preference eliminates the need to disclose known material facts.
- D. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Tennessee exam practice.
Correct Answer
D. Recognize that a counteroffer rejects the prior offer and proposes new terms in a way that fits Tennessee exam practice.
Explanation
The correct answer is D because counteroffer requires candidates to recognize that a counteroffer rejects the prior offer and proposes new terms. 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: Contracts, Finance, and Transfer
- Objective: counteroffer