Agency and License Law Practice Question
Question
A salesperson notices a possible compliance problem for the Utah Real Estate Sales Agent Exam involving license-required activity and state forms and disclosure awareness. Which statement is the best answer? (Item 91)
Answer choices
- A. The safest practice is to avoid written documentation so fewer questions are raised later.
- B. A licensee may give legal conclusions instead of recommending qualified legal advice when uncertain.
- C. Identify acts requiring a license when performed for compensation in a way that fits Utah exam practice.
- D. A verbal understanding always replaces a written real estate requirement.
Correct Answer
C. Identify acts requiring a license when performed for compensation in a way that fits Utah exam practice.
Explanation
The correct answer is C because license-required activity requires candidates to identify acts requiring a license when performed for compensation. The Utah 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: license-required activity