Agency and License Law Practice Question
Question
A supervising broker is reviewing a transaction file for the Utah Real Estate Sales Agent Exam involving advertising compliance and Utah Division of Real Estate. Which response best applies the rule? (Item 10)
Answer choices
- A. Client funds may be mixed with business funds if the broker reconciles the account later.
- B. Avoid misleading ads and include required brokerage or license identification 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. Avoid misleading ads and include required brokerage or license identification in a way that fits Utah 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 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: advertising compliance