Affiliate Broker Tennessee (TN PSI) National Practice Exam `

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Affiliate Broker Tennessee National Exam. Practice with flashcards and multiple choice questions, with hints and explanations. Prepare well for your licensing exam!

Practice this question and more.

What must a broker do if a client asks him to perform an action that is against the law?

They can proceed if requested.
They should seek legal advice.
They may break their duty of obedience.
They must refuse to obey the request.

The correct answer is: They must refuse to obey the request.

When a client requests a broker to perform an action that is against the law, the broker is obligated to refuse to comply with that request. This is grounded in the legal and ethical responsibilities of brokers to uphold the law and maintain professional integrity. By rejecting any action that is illegal, the broker not only protects themselves from potential legal repercussions but also ensures that they are adhering to the fiduciary duties they owe to their clients and to the broader community. The duty of obedience, which reflects a broker's responsibility to follow lawful instructions from clients, does not extend to actions that violate the law. Such violations can lead to serious consequences, including the loss of license, civil liability, and even criminal charges. Therefore, the broker's duty to adhere to the law takes precedence over the duty to follow a client's instructions, ensuring that all actions taken in a professional capacity uphold legal standards and ethical practices.