QuestionDecember 14, 2025

The duty an agent owes to their client to disclose the extent of their knowledge on a transaction's tax aspects when the agent determines it is a material fact is an example of a(n): A. agency duty. B. arbitration duty. C. fiduciary duty. D. Both a and C.

The duty an agent owes to their client to disclose the extent of their knowledge on a transaction's tax aspects when the agent determines it is a material fact is an example of a(n): A. agency duty. B. arbitration duty. C. fiduciary duty. D. Both a and C.
The duty an agent owes to their client to disclose the extent of their
knowledge on a transaction's tax aspects when the agent determines it
is a material fact is an example of a(n):
A. agency duty.
B. arbitration duty.
C. fiduciary duty.
D. Both a and C.

Solution
4.0(195 votes)

Answer

D. Both A and C. Explanation An agent must act in the best interests of their client, which includes full disclosure of material facts. This falls under fiduciary duties, and fiduciary duty is also a type of agency duty. Therefore, both apply.

Explanation

An agent must act in the best interests of their client, which includes full disclosure of material facts. This falls under fiduciary duties, and fiduciary duty is also a type of agency duty. Therefore, both apply.
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