An agent discovers their principal is engaging in misleading conduct regarding property disclosures. The agent has advised against this but the principal continues. What is the agent's best course of action to protect themselves legally?
Correct Answer
C) End the agency agreement and keep a record of the reasons for ending it
When a principal engages in conduct that could expose the agent to legal liability or professional sanctions, despite proper advice, the agent should terminate the agency relationship and document their reasons. Continuing to act could make the agent complicit in misleading conduct under consumer protection laws.
Why This Is the Correct Answer
Once advice has been ignored, continuing to act would make the agent a participant in the misleading conduct. Ending the agency and recording why protects the agent and shows it acted properly.
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