David listed his house for sale with Broker Paulson for $400,000. David told Broker Paulson it was imperative that the property be sold quickly. Broker Paulson showed the property to Henry and told him David was financially insolvent and would accept $380,000. Based on Broker Paulson's statement, Henry offered David $380,000 for his property. David accepted the offer. Concerning Broker Paulson's actions, which of the following is true?
a. Broker Paulson violated his fiduciary obligation to David since he acted in excess of his authority.
b. When David accepted the offer, Broker Paulson's actions were vindicated.
c. Broker Paulson's actions were proper since David stated he wanted an immediate sale.
d. Broker Paulson interpreted David's wishes and produced a sale. Acceptance of the offer made Broker Paulson's actions acceptable.
Answer: a. Broker Paulson violated his fiduciary obligation to David since he acted in excess of his authority.
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When the U.S. Treasury moves deposits from commercial banks to its account at the Fed, leading to an increase in ______________________________
Fill in the blank(s) with the appropriate word(s).
All trust funds received by a broker on behalf of the principals must be deposited in the broker's escrow or trust account or with an escrow agent named in the contract by the close of business on the
A) second working day, or as agreed upon in writing by the parties to the contract. B) fifth working day, or as agreed upon in writing by the parties to the contract. C) third working day, or as agreed upon in writing by the parties to the contract. D) tenth working day, or as agreed upon in writing by the parties to the contract.