A buyer asks the vendor's agent for the lowest price the vendor has said she would accept. The vendor has not authorised the agent to reveal it. What should the agent do?
Correct Answer
A) Decline to reveal it, because it is the vendor's confidential information.
Rule 7 of Schedule 1 says an agent must not use or disclose confidential information obtained while acting for a client unless the client authorises it or the law permits or compels it. The vendor's lowest acceptable price is confidential, and disclosing it would also be against her interests under rule 6.
Why This Is the Correct Answer
Without the vendor's authority, and with no law compelling disclosure, rule 7 forbids revealing her bottom price.
Why the Other Options Are Wrong
Background Knowledge for Ethics Compliance
Exam Tip for Ethics Compliance
Common Mistakes to Avoid on Ethics Compliance Questions
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A buyer's agent is bidding at auction for a client whose maximum is fixed. Bidding passes that figure. The client, reached by phone, says 'go a bit higher' but gives nothing in writing. What may the agent do?