Which of the following is an example of a fiduciary duty?

Prepare for the Champions Law of Agency Test. Use flashcards and multiple choice questions with hints and explanations to boost readiness. Get exam-ready!

The example of a fiduciary duty is accurately represented by the act of providing a fair assessment of property value. In fiduciary relationships, one party, typically the agent, has an obligation to act in the best interest of the other party, usually the client. This includes maintaining transparency, honesty, and diligence in all dealings.

A fair assessment of property value reflects a commitment to providing sound advice and information to the client based on factual analysis rather than personal interest or bias. This is essential because it safeguards the client’s interests, helping them make informed decisions regarding their property.

All other options illustrate behaviors that clearly contradict the principles of a fiduciary relationship. Withholding critical information would breach the duty of disclosure; prioritizing personal gain over the client's interests undermines the trust inherent in the fiduciary role; and ignoring client preferences reflects a lack of respect for the client's needs and desires. These behaviors would violate the agent's obligation to prioritize the client’s welfare and interests above their own.

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