Which of the following is an obligation of a broker in their duty?

Prepare for the CA Foundation Business Law Exam with our comprehensive quiz. Utilize flashcards and multiple-choice questions, each complete with hints and explanations. Ace your exam confidently!

Disclosing relevant facts to clients is a crucial obligation for brokers, as it aligns with their fiduciary duty to act in the best interests of their clients. This duty requires brokers to provide all pertinent information that could impact their clients' decisions, ensuring transparency and informed consent throughout the process. By disclosing relevant facts, brokers facilitate a trustworthy relationship, enabling clients to make knowledgeable choices about transactions.

Keeping client information private is also a significant responsibility, but it is focused on confidentiality rather than the broader obligation of informing clients. Negotiating on behalf of others is another key function of brokers, reinforcing their role as advocates for their clients. However, the emphasis on disclosure of relevant facts directly pertains to the broker's obligation to maintain transparency and uphold ethical standards in their dealings. Promoting their own interests first conflicts with the foundational principle of fiduciary duty, which prioritizes the client's needs over the broker’s personal gain.

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