Agency
A licensee who discovers that their client intends to engage in an unlawful transaction should:
AComplete the transaction to avoid liability
BRefuse to participate and withdraw from the representation✓ Correct
CNotify the other party immediately
DContact the DOS before taking any action
Explanation
An agent must not participate in illegal transactions. The duty of obedience only extends to lawful instructions. If a client intends to engage in an unlawful transaction, the agent must refuse to participate and may withdraw from the representation.
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