AgencyIntermediateCalifornia Exam

Which fiduciary duty requires an agent to follow all lawful instructions of the client?

ALoyalty
BDisclosure
CObedienceCorrect
DAccounting

Why Obedience Is Correct

Answer C: Obedience

The duty of obedience requires an agent to follow all lawful instructions of the principal. Note that the agent is not required to follow illegal instructions, and the duty does not override the agent's ethical or legal obligations.

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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