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Pa Rela Brokerage RulesBrokerage_operationsHARD

Under RELA, a Pennsylvania broker of record, Howard, operates a brokerage that participates in a franchise (e.g., Century 21, RE/MAX). Howard's franchise agreement requires certain advertising standards. If the franchise advertising standards conflict with RELA advertising requirements, which takes precedence?

Correct Answer

B) RELA requirements take precedence; the broker must comply with state law regardless of franchise agreement terms

Under RELA, state law requirements take precedence over private contractual obligations such as franchise agreements. The broker must comply with RELA's advertising requirements regardless of conflicting franchise terms. If the franchise standards are more stringent, the broker should comply with both.

Answer Options
A
The franchise agreement always takes precedence over state law
B
RELA requirements take precedence; the broker must comply with state law regardless of franchise agreement terms
C
The broker may choose whichever standard is more convenient
D
The SREC has no authority over franchise-related advertising

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Related Topics & Key Terms

Key Terms:

franchiseadvertising_conflictstate_law_precedencebrokerage_operationsRELA
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