National Brokerage: Unit 1

The Criminal Antitrust Penalty Enhancement and Reform Act increased the maximum criminal penalty for individuals to what amount? A.) $350,000 B.) $1 million C.) $2 million D.) $10 million

$1 million

Violations of the Sherman Anti-Trust Act can include prison terms and fines of up to how much per violation? A.) $50,000 B.) $250,000 C.) $500,000 D.) $1,000,000

$1,000,000

What is special about a universal agent? A.) A universal agent has power of attorney B.) A universal agent has veto power C.) universal agent has unilateral power D.) A universal agent has statutory powers

A universal agent has power of attorney

Agent Sam told a buyer that the fence line also marked the property line. Agent Sam knew that the property line did not extend to the fence line. Agent Sam's actions are an example of what? A.) Passive fraud B.) Unintended fraud C.) Active fraud D.) Puffing

Active fraud

What are the three primary areas of disclosure? A.) Limits, conditions, and funding B.) Relationships, performance history, investment value C.) Agency, property condition, and environmental hazards D.) Fiduciary, accounting, and feedback

Agency, property condition, and environmental hazards

Which of the following duties is NOT owed to a customer? A.) Confidentiality B.) Honesty C.) Reasonable care and skill D.) Proper disclosure

Confidentiality

The principal of Notice is sometimes called what? A.) Openness B.) Honesty C.) Disclosure D.) Diligence

Disclosure

When the real estate agent has produced a buyer who is ready, willing and able, the agent has generally done what? A.) Accounted to the principal B.) Earned a commission C.) Consummated the sale D.) Established personal competence

Earned a commission

Which of the following types of information can a licensee legally provided to both a principal and a customer? A.) Counsel B.) Facts C.) Legal D.) Advice

Facts

Which of the following best defines negligent misrepresentation? A.) Intentionally misrepresenting facts B.) Providing false information as facts C.) Failure to use ordinary or reasonable care in a situation D.) Manipulation of facts to direct a favorable outcome

Failure to use ordinary or reasonable care in a situation

Which of the following does a principal owe to his or her licensee? A.) Information B.) Access C.) Accounting D.) Performance

Information

Which duty requires that the agent act in good faith and obey the principal's directions? A.) Honesty B.) Care C.) Accounting D.) Obedience

Obedience

What is a form of implied agency relationship created by the actions of the parties involved rather than by written agreement? A.) Defined agency B.) Ostensible agency C.) At-Large agency D.) Non-Facto agency

Ostensible agency

Matt Bower is a developer. Will Jones is a builder. Matt agrees to sell Will a lot, but he conditions the sale by insisting that Will agree to list the property with him after the home is built. What is this called? A.) Market allocation B.) Price fixing C.) Coercion D.) Tie-in arrangement

Tie-in arrangement

Misrepresenting facts to a buyer might result in A.) an extended contract and protracted compensation B.) federal sanctions C.) loss of a business license D.) a voided contract and loss of commission

a voided contract and loss of commission

An agency relationship is based on A.) compensation B.) commission C.) authorization and mutual consent D.) contact and access

authorization and mutual consent

"Let's not do business with AVC Real Estate Company; they discount their commissions" is an example of what? A.) Price fixing B.) Boycott C.) Market allocation D.) Tying agreement

Boycott

An agency relationship is created in each of the following situations EXCEPT which? A.) A broker agrees to sell an un-licensed friend's home for no compensation B.) A client authorizes a broker to sell, exchange, and manage his property for 1 year C.) A broker and seller sign a listing agreement for 3 months D.) A broker shows a tenant an apartment

A broker shows a tenant an apartment

Which BEST describes the role of a fiduciary? A.) A broker can only accept a reasonable amount of profit over the agreed upon consideration B.) A fiduciary relationship is established when a property manager agrees to represent an owner in leasing the owner's property C.) A fiduciary can only disclose confidential information obtained after termination of fiduciary relationship D.) A fiduciary relationship is always created when a broker shows a buyer a house

A fiduciary relationship is established when a property manager agrees to represent an owner in leasing the owner's property

Which of the following best defines the term procuring cause? A.) Actions that demonstrate the unbroken efforts of an agent that are responsible for the buyer making a decision to complete the sale B.) Being involved at some point in the transaction C.) Scheduling and conducting open house tours D.) Establishing a marketing plan for the listing

Actions that demonstrate the unbroken efforts of an agent that are responsible for the buyer making a decision to complete the sale

What are the two forms of fraud? A.) Active and passive B.) Direct and nondirective C.) Major and minor D.) Primary and secondary

Active and passive

Which of the following duties best describes what an agent owes customers? A.) Fairness, care and honesty B.) Obedience, confidentiality and accounting C.) Diligence, care, and loyalty D.) Honesty, diligence and skill

Fairness, care and honesty

What is the primary directive given to a seller's agent? A.) Provide support to cooperating agents B.) Find a ready, willing and able buyer C.) Deal in the best interest of the buyer D.) Provide opinions based on experience

Find a ready, willing and able buyer

Which of the following is a common complaint buyers have against brokers? A.) Excessive paper work B.) Compensation fees C.) Misrepresentation of the facts D.) Failure to respond to questions

Misrepresentation of the facts

A person who hires an agent to represent his or her interests is known as what? A.) Customer B.) Referral C.) Advocate D.) Principal

Principal

The act of creating an agency relationship in which the principal accepts the conduct of someone who acted without prior authorization is called what? A.) Revision B.) Reaction C.) Ratification D.) Presumptive

Ratification

Which of these is not a violation of Sherman Antitrust laws? A.) Boycott B.) Price Fixing C.) Redlining D.) Market allocation

Redlining

Puffing is best characterized as which of the following A.) Fraud B.) Subjective opinion C.) Objective opinion D.) Misrepresentation

Subjective opinion

After listing a home with a broker, the seller told the broker NOT to disclose a major structural defect in the house. What should the broker do? A.) Refrain from telling prospective buyers because of the fiduciary responsibility to the seller B.) Refrain from telling the prospective buyers because that is the brokers responsibility to the seller C.) Tell the buyer only if he asks about it D.) Tell the buyer of the defect prior to the writing of an offer or refuse the listing

Tell the buyer of the defect prior to the writing of an offer or refuse the listing

An agent fails to discover flood marks on the walls in the basement of a property. The agent sells the property, and the buyer later sues the agent for failing to mention the problem. Which statement best describes what can happen in this case? A.) The agent may be guilty of intentional misrepresentation B.) The agent has an exposure to a charge of negligent misrepresentation C.) The agent has little exposure, since the problem was not mentioned on the signed disclosure form D.) The agent is not vulnerable, since the problem was not discovered

The agent has an exposure to a charge of negligent misrepresentation

Obedience of the agent to the principal means what? A.) The agent may disobey those instructions in good faith if the agent feels it is necessary B.) The agent must follow all the instructions of the seller even if they violate state law C.) The agent must follow those instructions regardless of personal feelings about them, as long as they do not violate the state or federal laws D.) The agent must follow all those instructions regardless of the consequences

The agent must follow those instructions regardless of personal feelings about them, as long as they do not violate the state or federal laws

Which of the following statements best defines agency? A.) The fiduciary relationship between the agent and the principal B.) The fiduciary relationship between the agent and the broker C.) The fiduciary relationship between the agents D.) The fiduciary relationship between the agent and the customer

The fiduciary relationship between the agent and the principal

Agent Paul is bound to inform his client of all facts that might affect the client's interests - both what Paul knows and what he "should have known." Which of these situations would not be something Paul "should know?" A.) There is a crack in the basement wall B.) The air conditioner does not work C.) The owner of the property is HIV positive D.) The casement windows have broken seals

The owner of the property is HIV positive

Which of the following best describes "agency coupled with an interest?" A.) When a licensee knows the seller in a property transaction B.) When a licensee knows the buyer in a property transaction C.) When a licensee has previously sold the property in a current transaction D.) When a licensee holds interest in a property transaction

When a licensee holds interest in a property transaction

An agency relationship A.) can occur through implication (what you might say or do) without a written contract B.) always require a written contract C.) is always derived by express act D.) is better accomplished through implication or ratification

can occur through implication (what you might say or do) without a written contract

A special agent is also known as a A.) single or solo agent B.) directed or assigned agent C.) limited or specific agent D.) general or area agent

limited or specific agent

Agent Mary forgot to complete a sales contract rider. This resulted in a $300 loss for her client. Agent Mary's actions can be described as A.) a hostile intent to defraud B.) negligent C.) a breach of contract D.) active fraud

negligent

Agent Fred fronts his cousin Norm money to buy a client's house. Shortly after the closing, Agent Fred flips the house and realizes a substantial profit. Agent Fred's actions might be describe as A.) across the table B.) arms length C.) direct intent D.) self-dealing

self-dealing