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 confidentiality and sales agent brokerage affiliation. Which answer best reduces risk? (Item 24)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. The affiliated licensee may handle the matter independently without broker responsibility.
- C. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
- D. Protect confidential client information unless disclosure is authorized or required in a way that fits Utah exam practice.
Correct Answer
D. Protect confidential client information unless disclosure is authorized or required in a way that fits Utah exam practice.
Explanation
The correct answer is D because confidentiality requires candidates to protect confidential client information unless disclosure is authorized or required. 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: hard
- Domain: Agency and License Law
- Objective: confidentiality