Agency

An agent who earns a referral fee from a home warranty company without disclosing this to the client is violating which duty?

AObedience
BAccounting (disclosure of all benefits received from the transaction)✓ Correct
CLoyalty
DReasonable care

Explanation

The duty of accounting requires the agent to disclose and account for all money and benefits received in connection with a transaction. Accepting an undisclosed referral fee violates this duty.

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