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A Kentucky sales associate asks about a licensee circulates an unwarranted legal threat. What is the best answer?

Correct Answer

D) Publishing or circulating an unjustified or unwarranted threat of legal proceedings or other action is sanctionable

KRS 324.160 sanctions unjustified or unwarranted threats. Source basis: KRS 324.117, KRS 324.160, and 201 KAR 11:121, Kentucky Legislative Research Commission official statutes/regulations: advertising, supervision, brokerage records, document delivery, affiliation, compensation, agency, and improper conduct; checked 2026-04-30.

Answer Options
A
The conduct is allowed if the transaction later closes successfully.
B
The principal broker has no responsibility once a sales associate handles the file.
C
The rule applies only to commercial transactions.
D
Publishing or circulating an unjustified or unwarranted threat of legal proceedings or other action is sanctionable

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Related Topics & Key Terms

Related Topics:

ky.IIIbrokerage_activities

Key Terms:

kentuckyky.IIIbrokerage_activitiesunjustified-threat
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