Law of Agency 3 Flashcards

1
Q

Procuring Cause of Sale

A

The individual who through a series of uninterrupted activities, brought about the completion of a contract

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2
Q

Sherman Anti-Trust Act

A

Federal legislation that specially deals with illegal fixing of commission rates

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3
Q

Price Fixing

A

Setting commission rates between groups of brokers in an area

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4
Q

Honest dealing

A

An agent may not deceive or defraud a customer

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5
Q

Reasonable care

A

The agent is held to the standards of knowledge, expertise and ethics defined by TRELA

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6
Q

The agreement that buyers sign, allowing a broker to represent them is called a…

A

Buyer/Tenant Rep Agreement

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7
Q

Who may earn a commission and also sue to collect a commission?

A

Broker

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8
Q

What must a broker due to enforce payment of a commission?

A

1) Have valid real estate license
2) Signed employment agreement
3) Must be procuring cause of sale

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9
Q

Who is the procuring cause of sale?

A

Individual who through uninterrupted activities, brought about completion of a contract.

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10
Q

(True/False) The courts consider a broker’s oral listing agreement with a client as enforceable against the client.

A

False

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11
Q

(True/False) Commission rates are not negotiable between parties

A

False

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12
Q

Which federal law(s) has the greatest impact in the area of illegal price-fixing of commissions?

A

1) The Clayton Act

2) Sherman Anti-Trust Act

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13
Q

(True/False) TREC sets commission rate between broker and the broker’s client

A

False

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14
Q

What actions by a broker are violations of federal law?

A
  • price fixing
  • limiting competition by assigning market areas
  • boycotting discount brokers
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15
Q

(True/False) Negotiating commission rates with clients are a violation of federal law

A

False

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