AgencyIntermediateDelaware Exam

What is 'gross negligence' in the context of Delaware real estate agency?

AAny mistake made by a real estate agent
BConduct that shows reckless disregard for others' rights, going beyond ordinary negligenceCorrect
CA material misrepresentation about property features
DFailure to disclose commission rates to clients

Why Conduct that shows reckless disregard for others' rights, going beyond ordinary negligence Is Correct

Answer B: Conduct that shows reckless disregard for others' rights, going beyond ordinary negligence

Gross negligence is conduct showing reckless indifference to the rights of others — a substantial deviation from the standard of care that ordinary licensees would exercise. It is a higher standard than ordinary negligence and may result in greater damages.

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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