Answer_Key_Chapter_8

Answer_Key_Chapter_8 - © 2004 Rockwell Publishing Company...

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Unformatted text preview: © 2004 Rockwell Publishing Company 1 Answer Key 1. D 2. A 3. D 4. B 5. C 6. B 7. B 8. C 9. B 10. D 11. D 12. A 13. A 14. A 15. B © 2004 Rockwell Publishing Company 2 Answer Key with Explanations Question #1 Answer: D Explanation: Agency law governs all relationships among agents, principals, and third parties. Question #2 Answer: A Explanation: Accepting a buyer's deposit was within the agent's scope of authority, as authorized by the seller. Therefore, the seller bears the risk of loss of the deposit. Question #3 Answer: D Explanation: A broker working for a seller has a fiduciary duty to disclose all offers to the seller, regardless of the contents of the offers. A seller's agent would have no fiduciary duty to the buyer. Question #4 Answer: B Explanation: The agent's duty to keep the principal informed is part of the fiduciary relationship. A fiduciary is held to exacting standards in disclosure and accountability because she operates in a...
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This note was uploaded on 09/06/2011 for the course FIN 365 taught by Professor Staff during the Spring '11 term at S.F. State.

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Answer_Key_Chapter_8 - © 2004 Rockwell Publishing Company...

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