AgencyIntermediateCalifornia Exam

The duty of 'obedience' in agency law means an agent must:

AAgree with the client's decisions even if illegal
BFollow lawful instructions from the principalCorrect
CObey the MLS rules above all else
DDefer all decisions to the broker

Why Follow lawful instructions from the principal Is Correct

Answer B: Follow lawful instructions from the principal

The duty of obedience requires an agent to follow the lawful instructions of their principal. An agent is NOT required to follow instructions that are illegal, such as discriminating in housing.

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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