AgencyIntermediateAlaska Exam

Under Alaska law, which action by an agent would constitute a breach of the duty of 'full disclosure' to a client?

APresenting a below-list-price offer to the seller
BFailing to tell the seller about a competing offer from the agent's friendCorrect
CAdvising the seller that the market is slower than six months ago, in general
DRecommending the seller reduce the price

Why Failing to tell the seller about a competing offer from the agent's friend Is Correct

Answer B: Failing to tell the seller about a competing offer from the agent's friend

Full disclosure requires the agent to tell the client all material information relevant to their interests. Failing to reveal a competing offer — especially from a person the agent knows — would be a serious breach of the duty of full disclosure and could constitute fraud.

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.

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