Broker Billy Secured a Written Listing from a Large Company

question 27

Multiple Choice

Broker Billy secured a written listing from a large company which owned an unused warehouse. Billy later entered into a verbal agreement to share his commission with cooperating broker, Cynthia. The cooperating broker procured a buyer, but later Billy refused to split the commission at closing. Cynthia could

• A) sue to recover her share.
• B) not sue because this was only a verbal agreement.
• C) ask the real estate commission to arbitrate.
• D) forbid her sales agents from ever working with Billy's agents in the future.

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Definitions:

Average Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.

Rent-Seeking Behavior

Activities aimed at increasing one's share of existing wealth without creating new wealth, often through manipulating the social or political environment.

Net Social Gain

The total benefit to society from producing and consuming a good or service, taking into account both the private benefits and costs and any external benefits or costs.

Innovation

The process of creating new products, services, processes, or technologies that deliver value to society or the market.