Chapter 5.1 National Brokerage

What is special about a universal agent? A universal agent has power of attorney. A universal agent has veto power. universal agent has unilateral power. 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? Passive fraud Unintended fraud Active fraud Puffing

Active fraud

Which of the following is NOT a form of agency? Express agency Implied agency Closed agency Ostensible agency

Closed agency

The principles of an agency relationship include all of these factors except which one? Mutual consent Authorization Compensation Fiduciary duties

Compensation

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

Earned a commission

An actual agency created by written or oral agreement between the principal and the agent. Through this agreement the principal authorizes a person to act as the principal's agent. For example, a written listing agreement between a seller of real estate and broker is this.

Express agency

Which of the following types of information can a licensee legally provided to both a principal and a customer? Counsel Facts Legal Advice

Facts

An agency created from the conduct of the principal and agent. It is generally inferred by circumstances that imply an intention to create an agency relationship. A(n) ______ is an actual agency, and is a fact to be proved by deductions or inferences from other facts.

Implied agency

An agent's duties to a principal include all of the following except which? Loyalty Accounting Notice Legal advice

Legal advice

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

Misrepresentation of the facts

Under what conditions can an agent provide advice and counsel to the customer? Upon a verbal request by the customer Upon a written request by the customer. When the request benefits the agent's client Never

Never

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

Ostensible agency

A person who has been given the appearance of being an employee or acting (an agent) for another (principal), which would make anyone dealing with the _______ reasonably believe he/she was an employee or agent.

Ostensible agent

The authority to act for another person in specified or all legal or financial matters.

Power of attorney

"Everyone charges the same so you might as well list with me" is an example of what? Price fixing Boycott Market allocation Tying agreement

Price fixing

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

Principal

Puffing is best characterized as which of the following Fraud Subjective opinion Objective opinion Misrepresentation

Subjective opinion

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

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

limited or specific agent.

Antitrust laws prohibit market allocation. trade unions. market coops. volume discounting

market allocation.

Paul Shafer is acting as the agent of David Smith. He can agree to a change in price without Smith's approval. may share his commission with a licensed attorney. must report all offers to Smith. can make a profit in addition to his commission.

must report all offers to Smith.

An agent is one who is the source of another's authority one who represents and acts for another one who has conferred authority to another one who has been paid a commission by another

one who represents and acts for another