Which of the following is NOT a lawful extension of the duty of obedience?
Correct Answer
B) withholding a known material defect because the seller insists
Obedience covers lawful instructions only. An agent may not follow instructions that require concealment or fraud.
Why This Is the Correct Answer
Obedience covers lawful instructions only. An agent may not follow instructions that require concealment or fraud.
Why the Other Options Are Wrong
Option A: following a seller's instruction to reduce the price
"following a seller's instruction to reduce the price" fits the category described in the question, so it is not the EXCEPT choice.
Option C: delaying showings for one legal weekend at the seller's request
"delaying showings for one legal weekend at the seller's request" fits the category described in the question, so it is not the EXCEPT choice.
Option D: using the listed marketing budget as directed by the seller
"using the listed marketing budget as directed by the seller" fits the category described in the question, so it is not the EXCEPT choice.
Deep Analysis of This Agency Question
The duty of obedience has built-in ethical and legal limits because agents cannot be required to violate laws or ethical standards, even when clients demand it. This limitation protects both agents from legal liability and the public from fraudulent practices, while still preserving the client's right to control lawful decisions about their property.
Background Knowledge for Agency
The 'lawful instructions only' limitation developed through court cases in the mid-20th century when agents faced liability for following client instructions that violated disclosure laws or fair housing regulations. This legal evolution recognized that blind obedience could harm both agents and third parties while undermining public policy.
Memory Technique
Think 'OBEY unless it's ILLEGAL' - imagine a red line that agents cannot cross even for clients. Picture a traffic light: green for lawful instructions (reduce price, delay showings), red for unlawful ones (conceal defects, discriminate).
Exam Tip for Agency
Look for answer choices involving concealment, fraud, discrimination, or other clearly illegal activities when asked about improper obedience. These will typically be the correct answer in questions about what agents cannot do, even when clients demand it.
Real World Application in Agency
An agent can lawfully obey a seller's instruction to price their home $10,000 below market value, delay showings for a family vacation, or spend marketing dollars on specific advertising platforms. However, the agent must refuse to conceal a known roof leak because disclosure laws require revealing material defects regardless of seller preferences.
Related Topics & Key Terms
Key Terms:
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