A broker's unlicensed assistant worked late nights and weekends to help ensure the successful closing of a difficult transaction. The assistant's extra work included making several phone calls to the prospective buyers, encouraging them to accept the seller's counteroffer. Largely because of the assistant's efforts, the sale went through with no problem. Now the broker wants to pay the assistant a percentage of the commission "because the assistant has really earned it." Under Texas law, the broker may
A) pay a commission to the assistant only if the assistant is an independent contractor.
B) not pay the assistant a cash commission, but is permitted to make a gift of tangible personal property.
C) compensate the assistant in the form of a commission under the circumstances described here.
D) not pay a commission to the assistant under the facts presented here. They are both in violation of rules regarding unlicensed assistants.
Answer: B) not pay the assistant a cash commission, but is permitted to make a gift of tangible personal property.
The broker may not pay a commission to the assistant under the facts presented here.
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Cutter's Catering Services advertises that they are the "friendliest caterers in town." Though their prices are no lower than the rates of competitors, they put a great deal of emphasis on getting to know the needs of their customers. They tailor their efforts to meet these needs, providing a unique dining experience that exactly matches the customer's expectations. Cutter's Catering is likely to find that this approach is more effective in achieving its goals than the use of aggressive price cutting.
a. true b. false