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Agency PracticeProfessional ConductMEDIUM

An agent discovers their principal is asking them to engage in misleading advertising about the property's features. What should the agent do?

Correct Answer

B) Refuse to publish the misleading claims and explain the legal risk to the principal

Agents cannot engage in misleading or deceptive conduct even when instructed by their principal. Professional conduct rules and consumer protection laws require agents to refuse unlawful instructions and educate their clients about proper practices.

Answer Options
A
Prepare the advertisement as instructed, because the vendor is the client paying for it
B
Refuse to publish the misleading claims and explain the legal risk to the principal
C
Publish it with a disclaimer that the agent has not checked the vendor's claims
D
Ask the state real estate institute to approve the wording before publishing

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Related Topics & Key Terms

Key Terms:

misleading conductAustralian Consumer Lawprofessional obligationsagency relationshipconsumer protection
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