Agency and License Law Practice Question
Question
A client asks whether a fact should be disclosed for the Utah Real Estate Sales Agent Exam involving disciplinary grounds and sales agent brokerage affiliation. Which answer best reduces risk? (Item 34)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks in a way that fits Utah exam practice.
- C. The issue can be ignored if the parties want to close quickly.
- D. The rule applies only to commercial transactions and never to residential transactions.
Correct Answer
B. Recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks in a way that fits Utah exam practice.
Explanation
The correct answer is B because disciplinary grounds requires candidates to recognize fraud, misrepresentation, trust fund violations, and unlicensed activity as discipline risks. 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: disciplinary grounds