AgencyIntermediateAlaska Exam

Which of the following BEST describes the duty of 'obedience' in an agency relationship?

AFollowing all lawful client instructions even if the agent disagreesCorrect
BFollowing all client instructions including illegal ones to preserve the relationship
CObeying all brokerage company policies above client instructions
DObeying all Commission regulations before client instructions

Why Following all lawful client instructions even if the agent disagrees Is Correct

Answer A: Following all lawful client instructions even if the agent disagrees

Obedience requires an agent to follow all lawful instructions of the client. However, an agent is never required to obey instructions that are illegal, unethical, or would violate the agent's duties to third parties.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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