Agency & LawQuestion 45 of 120
If a listing broker fails to disclose to their seller-client a material fact that harms the seller, the broker may be liable for:
a.Nothing, since disclosure is optional
b.Breach of fiduciary duty
c.A federal antitrust violation only
d.Only a small administrative fee
Explanation
Failing to disclose material facts to a client can constitute a breach of the fiduciary duty of disclosure and may expose the broker to liability and license discipline. Agents must communicate information relevant to the client's decision.
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- Which of the following actions by an agent would MOST likely breach the fiduciary duty of loyalty?
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