New Jersey Real Estate Practice Exam Free Practice Question
A broker-in-charge believes that providing a handbook of company policies constitutes adequate training, as every associated licensee has had the required prelicense education in real estate, and all are operating as independent contractors. An associated licensee commits a fraud, but claims to not understand the situation due to lack of training, and blames the broker-in-charge. The broker-in-charge argues that it was the associate's responsibility to ask for the broker's help if the associate was unsure about correct procedure. In this case, the
Correct Answer: A
Rationale: In this scenario, both the broker and the associate share responsibility. The broker-in-charge failed to provide adequate training beyond just a handbook, which is insufficient for ensuring that independent contractors understand their obligations. This negligence can lead to disciplinary action against the broker. Conversely, the associate's failure to seek guidance when unsure also constitutes a lapse in responsibility, warranting potential discipline.
Option B incorrectly suggests that only the broker is at fault, ignoring the associate's role. Option C overlooks the broker's duty to ensure adequate training, regardless of the independent contractor status. Option D incorrectly absolves the broker of responsibility, as proper training should have been provided to prevent misunderstandings.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now