Prompt Legality generally concerns issues in which you can't have an agreement to do something illegal,...

Prompt

Legality generally concerns issues in which you can't have an agreement to do something illegal, or perhaps against public policy(yes, this is a vague term and not published.) How does licensing protect the public's interest?

Ex. The license to practice a profession such as medicine, law, dentistry.

Try This Scenario

Ray Max gives me a call and asks me if I know of a candidate-buyer for the vacant house next door to my house. I informed my brother-in-law of the house and 'sold' him on purchasing the contract. Brother-in-law calls Max and purchases the house. Commission pays 1.5% of the purchase price of $300,000, or $4500. Max says he cannot pay me the commission as I do not have a 'license' to sell real estate.

Is he correct?
Can you assert a valid legal claim, in 'equity'(recall equity comes in to correct a bargain passing for no 'consideration', 'value', or for free, and as we know, "...there's no free lunch!" in this world.)

Solutions

Expert Solution

Licensing in the form of real estate licensing or medical licenses protects society from harm by setting a barrier for entry to the market which weeds out unqualified applicants who could have harmed their customers.Licensing is also an effective tool in terms of setting standards for an occupation since most licenses require you to give a test of some sort in order to obtain them.

Max is right since state requirements for earning a real estate license may vary but all states prohibit selling property independently unless an individual possesses a broker’s license.He is under no legal obligation to pay you the commission.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

do you feel that there have been any ethical issues and or concerns with the COVID...

do you feel that there have been any ethical issues and or concerns with the COVID 19 pandemic

What concerns should the United States have with the potential of illegal aliens bringing diseases such...

What concerns should the United States have with the potential of illegal aliens bringing diseases such as TB, hepatitis, and other public health concerns across the border with them? What steps do you think our government could take to address this problem and what agencies would you consider using to assist you?

Do you have concerns about the "Wal-Mart Squeeze?

1. What concerns, if any, do you have about writing an essay? If you have no...

1. What concerns, if any, do you have about writing an essay? If you have no concerns, why is that so? 2. What specific developmental/organizational strategy or strategies will you employ for each body paragraph ? 3. What steps will you take to ensure that each body paragraph is coherent, cohesive and effectively written?

Have you ever experienced a conflict of interest or been tempted to do something that you...

Have you ever experienced a conflict of interest or been tempted to do something that you thought went against your job responsibilities? Describe an employment or business-related situation where your self-interest diverged from what you believed to be morally right.

The acquisition of real estate generally requires a written agreement between the parties. Which of the...

The acquisition of real estate generally requires a written agreement between the parties. Which of the following is not a written form typically used by a buyer and seller to transfer title of the property? A. An Option Agreement B. A Right of First Refusal Agreement C. A Purchase and Sales Agreement D. An Operating Agreement E. None of the Above

Do you see sustainability as something that will have a future impact on financial reporting and...

Do you see sustainability as something that will have a future impact on financial reporting and general accountability? (i.e. Rights to Resources, Potential Future Liabilities, Risk Mitigation, and Intangibles)

What if you could do something that you would not get caught at; something that would...

What if you could do something that you would not get caught at; something that would make you financially secure, happy and make for an easy life. What would it take to make you do it?

Have you ever been misled into an agreement? Do you think there was any fraud or...

Have you ever been misled into an agreement? Do you think there was any fraud or misrepresentation or simply “puffing”? Please describe the situation and the outcome.

You do not have concerns about management's integrity, but you know that management's compensation is partially...

You do not have concerns about management's integrity, but you know that management's compensation is partially determined by meeting aggressive revenue targets. How would you consider this information in the audit risk model? Question 3 options: increase acceptable audit risk for the audit and decrease inherent risk for sales reduce acceptable audit risk for the audit and decrease inherent risk for sales reduce acceptable audit risk for the audit and increase inherent risk for sales increase acceptable audit risk for...

Subjects