Law of Agency – Champions Exam
Correct Questions & Answers
Accurate 100%
A FIDUCIARY RELATIONSHIP - Correct Answer-✔✔A RELATIONSHIP
WHERE THE AGENT ACTS ON BEHALF OF THE CLIENT
A COOPERATIVE BROKER - Correct Answer-✔✔SELLS THE LISTING OF ANOTHER
BROKER
UNSCRUPULOUS LICENSE HOLDERS - Correct Answer-✔✔THE TEXAS REAL ESTATE
COMMISSION'S MAIN PURPOSE IS TO PROTECT THE PUBLIC FROM
AGENCY - Correct Answer-✔✔AN AGENCY RELATIONSHIP EXISTS WHEN ONE
PERSON ACTS FOR OR ON BEHALF OF ANOTHER PERSON.
The licensee did not know of the falsity of the misrepresentation - Correct
Answer-✔✔The amendments in 1996 to the License Act state that an agent is not
liable for a misrepresentation or concealment of material fact by a party if:
PRINCIPALS HAVE DUTIES TO THEIR AGENTS - Correct Answer-✔✔COMPENSATION
REIMBURSEMENT
INDEMNIFICATION
PERFORMANCE
,THE COMMISSION MAY SUSPEND OR REVOKE A LICENSE - Correct Answer-
✔✔ACTS NEGLIGENTLY OR INCOMPETENTLY AND FAILS WITHIN A REASONABLE
TIME TO PROPERLY ACCOUNT FOR OR REMIT OF MONEY THAT IS RECEIVED BY THE
LICENSE HOLDER.
Public Responsibility - Correct Answer-✔✔Honesty
Integrity
Fairness
Disclosure of material facts
Accounting of funds held
Fiduciary Responsibility - Correct Answer-✔✔Put the interest of the of the client
first
Give full disclosure
Exhibit trust and honesty
Exercise good business judgement
Be loyal
Be competent
Indemnification - Correct Answer-✔✔MEANS THAT THE PRINCIPAL WILL PROTECT
THE AGENT FROM SUFFERING A MONETARY LOSS DUE TO THE AGENT'S RELIANCE
ON INFORMATION RECEIVED FROM THE PRINCIPAL.
WRITING - Correct Answer-✔✔THE MOST DESIRABLE METHOD OF CREATING AN
AGENCY RELATIONSHIP WITH A BUYER, SELLER, LANDLORD, OR TENANT.
, Agency of Estoppel - Correct Answer-✔✔A PRINCIPAL INADEQUATELY SUPERVISES
AN AGENT. THE AGENT TAKES ON POWERS THAT GO BEYOND THE SCOPE OF
AUTHORITY GIVEN BY THE PRINCIPAL (EXCEEDS AUTHORITY)
EXPRESS AUTHORITY - Correct Answer-✔✔A WRITTEN LISTING AGREEMENT OR
BUYER REPRESENTATION AGREEMENT IS EVIDENCE THAT THE AGENCY
RELATIONSHIP EXISTS, AND PROVIDES THE AGENT WITH
Agency Authority - Correct Answer-✔✔The Agent's authority to act on behalf of
someone else, usually an insurer. This authority is derived from the agent's
contract with the insurer.
IMPLIED AUTHORITY - Correct Answer-✔✔IS THE NORM OR WHAT IS CONSIDERED
CUSTOMARY IN THE BUSINESS.
FIDUCIARIES - Correct Answer-✔✔ARE HELD TO THE HIGHEST AMOUNT OF GOOD
FAITH, ARE REQUIRED TO EXCLUDE SELFISH INTEREST, MAKE FULL DISCLOSURE OF
ALL RELEVANT FACTS.
A COMMON EXAMPLE OF A GENERAL AGENT - Correct Answer-✔✔IS A PROPERTY
MANAGER
SPECIAL AGENCY - Correct Answer-✔✔RELATIONSHIP IS THE MOST LIMITED OF
ALL THE AGENCY RELATIONSHIPS. MAY PREFORM ONLY LIMITED DUTIES.
Correct Questions & Answers
Accurate 100%
A FIDUCIARY RELATIONSHIP - Correct Answer-✔✔A RELATIONSHIP
WHERE THE AGENT ACTS ON BEHALF OF THE CLIENT
A COOPERATIVE BROKER - Correct Answer-✔✔SELLS THE LISTING OF ANOTHER
BROKER
UNSCRUPULOUS LICENSE HOLDERS - Correct Answer-✔✔THE TEXAS REAL ESTATE
COMMISSION'S MAIN PURPOSE IS TO PROTECT THE PUBLIC FROM
AGENCY - Correct Answer-✔✔AN AGENCY RELATIONSHIP EXISTS WHEN ONE
PERSON ACTS FOR OR ON BEHALF OF ANOTHER PERSON.
The licensee did not know of the falsity of the misrepresentation - Correct
Answer-✔✔The amendments in 1996 to the License Act state that an agent is not
liable for a misrepresentation or concealment of material fact by a party if:
PRINCIPALS HAVE DUTIES TO THEIR AGENTS - Correct Answer-✔✔COMPENSATION
REIMBURSEMENT
INDEMNIFICATION
PERFORMANCE
,THE COMMISSION MAY SUSPEND OR REVOKE A LICENSE - Correct Answer-
✔✔ACTS NEGLIGENTLY OR INCOMPETENTLY AND FAILS WITHIN A REASONABLE
TIME TO PROPERLY ACCOUNT FOR OR REMIT OF MONEY THAT IS RECEIVED BY THE
LICENSE HOLDER.
Public Responsibility - Correct Answer-✔✔Honesty
Integrity
Fairness
Disclosure of material facts
Accounting of funds held
Fiduciary Responsibility - Correct Answer-✔✔Put the interest of the of the client
first
Give full disclosure
Exhibit trust and honesty
Exercise good business judgement
Be loyal
Be competent
Indemnification - Correct Answer-✔✔MEANS THAT THE PRINCIPAL WILL PROTECT
THE AGENT FROM SUFFERING A MONETARY LOSS DUE TO THE AGENT'S RELIANCE
ON INFORMATION RECEIVED FROM THE PRINCIPAL.
WRITING - Correct Answer-✔✔THE MOST DESIRABLE METHOD OF CREATING AN
AGENCY RELATIONSHIP WITH A BUYER, SELLER, LANDLORD, OR TENANT.
, Agency of Estoppel - Correct Answer-✔✔A PRINCIPAL INADEQUATELY SUPERVISES
AN AGENT. THE AGENT TAKES ON POWERS THAT GO BEYOND THE SCOPE OF
AUTHORITY GIVEN BY THE PRINCIPAL (EXCEEDS AUTHORITY)
EXPRESS AUTHORITY - Correct Answer-✔✔A WRITTEN LISTING AGREEMENT OR
BUYER REPRESENTATION AGREEMENT IS EVIDENCE THAT THE AGENCY
RELATIONSHIP EXISTS, AND PROVIDES THE AGENT WITH
Agency Authority - Correct Answer-✔✔The Agent's authority to act on behalf of
someone else, usually an insurer. This authority is derived from the agent's
contract with the insurer.
IMPLIED AUTHORITY - Correct Answer-✔✔IS THE NORM OR WHAT IS CONSIDERED
CUSTOMARY IN THE BUSINESS.
FIDUCIARIES - Correct Answer-✔✔ARE HELD TO THE HIGHEST AMOUNT OF GOOD
FAITH, ARE REQUIRED TO EXCLUDE SELFISH INTEREST, MAKE FULL DISCLOSURE OF
ALL RELEVANT FACTS.
A COMMON EXAMPLE OF A GENERAL AGENT - Correct Answer-✔✔IS A PROPERTY
MANAGER
SPECIAL AGENCY - Correct Answer-✔✔RELATIONSHIP IS THE MOST LIMITED OF
ALL THE AGENCY RELATIONSHIPS. MAY PREFORM ONLY LIMITED DUTIES.
