Final answer:
In dual agency transactions, licensees can maintain ethical behavior by being transparent with all information. Transparency is essential to uphold trust and meet ethical standards in such scenarios with inherently divided loyalty.
Step-by-step explanation:
Since loyalty is inherently divided in dual agency transactions, licensees can maintain ethical behavior by being transparent with all information whenever possible. Ensuring transparency is crucial because it aids in maintaining trust among all parties involved in a dual agency scenario. Withholding information, sharing confidential details without consent, or manipulating information would likely lead to unethical practice and possibly legal repercussions. It is paramount for agents to navigate dual agency with careful balance and to adhere to their fiduciary duties while managing interests that may sometimes be competing.