Under Washington's statutory agency framework (RCW 18.86), which of the following BEST describes the distinction between the duties owed to a 'client' versus the duties owed to a 'customer'?

Correct Answer

B) A client receives full fiduciary duties including loyalty, disclosure, and confidentiality; a customer receives only good faith and honesty

RCW 18.86 establishes a two-tier duty structure. A licensee's client — the party the licensee represents — is owed fiduciary-level duties including loyalty, disclosure of material facts, confidentiality, reasonable care and skill, and accounting. A customer — a party the licensee is not representing — is owed only the duties of good faith and honesty. This distinction is a core feature of Washington's codified statutory agency framework and is heavily tested on the state exam.