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RES exam question on Ethics & Professional Conduct: Salesperson Melissa acts for Mr Lau, who has told her in confidence that he must sell…

MediumProfessional Practice, Ethics & Conduct · Paper 2

Salesperson Melissa acts for Mr Lau, who has told her in confidence that he must sell within a month to settle a business debt. The buyer's salesperson asks Melissa why the unit is priced below recent transactions in the block. Which of the following statements is/are correct? (i) Melissa may not disclose Mr Lau's deadline without his consent, unless the law requires or allows it. (ii) She may reveal the deadline if that is likely to bring the quicker sale Mr Lau wants. (iii) She must not give a false reason for the pricing when answering the buyer's salesperson. (iv) Information she learns while acting for Mr Lau is protected, not only what he tells her himself.

  1. A(i) and (iii) only
  2. B(i), (iii) and (iv) only
  3. C(ii), (iii) and (iv) only
  4. D(i) and (iv) only
Show answer & explanation

Answer

B. (i), (iii) and (iv) only

Explanation

Answer: (i), (iii) and (iv) only. The deadline stays confidential without Mr Lau's consent, and Melissa may decline to explain the price but not invent a reason.(i) True. Paragraph 15(1) bars disclosing confidential client information unless the client consents or the law requires or allows it.(iii) True. She may decline to explain the price, but she must not mislead anyone or misrepresent a relevant fact.(iv) True. Paragraph 15 reaches information obtained in the course of acting, not only what the client tells her.Rule: A salesperson must not disclose or use the client's confidential information, however obtained while acting, without consent or legal requirement or permission. Any permitted disclosure goes only to the appropriate person and only as far as necessary.Source: Code of Ethics and Professional Client Care paras 15(1), 15(2) and 6(4)(c) (First Schedule to the Estate Agents (Estate Agency Work) Regulations 2010, current at 1 October 2026)

Why the other options are wrong

  • (ii) False. A motive that serves the client is not consent, and revealing his urgency weakens his bargaining position.

Study the concept behind this question: CEA Code of Ethics & Professional Conduct

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