Question 1 & Explain Answer Please

A broker is concerned because the firm's standard purchase contract form makes no mention of mold, the requirement for CO detectors, and other environmental issues that often end up in litigation. Using language created by other firms' attorneys in addenda he has seen, he creates an addendum to be used by all salespeople and broker associates in his firm. The broker in this case

A - may be in violation of both license law and intellectual property laws. B - is entitled to adopt addenda that were used in transactions with clients of his firm. C - is acting appropriately under the fiduciary duties of loyalty and care to protect clients. D - is not considered to be practicing law since he is using language created by attorneys to protect consumers.

Question 2

A potential buyer for one of a broker's listings is particularly concerned with the danger of flooding since she is moving from an area that recently had severe flood damage. What action should the listing broker take to reduce this buyer's concern?

A - Advise her that homeowner's insurance covers flood damage, so she does not need to worry. B - Tell her not to worry because any lender will require flood insurance for a property in a flood plain. C - Recommend that she consult the online information on the National Flood Insurance Program for maps and the availability of flood insurance. D - Inform her that the seller's property disclosure does not reveal any flooding problem. If she does suffer flood damage later, the seller will be responsible.