Without telling the client, an agent accepts a bonus from a contractor for steering the client to that contractor. What fiduciary problem does this describe?
Correct Answer
C) Secret profit
Secret profit is correct because the facts match an undisclosed benefit or compensation that violates the duty of loyalty. That is the best description of the relationship, right, or legal concept tested here.
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Before advising a client on pricing, the broker carefully reviews recent comparable sales and verifies the data. Which fiduciary duty is the broker performing?
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