Final answer:
A broker conducting negotiations without the buyer's consent is executing an unauthorized transaction, leading to potential legal and regulatory consequences.
Step-by-step explanation:
If a broker negotiates a sale on behalf of a buyer without the buyer's permission, it is considered unauthorized action. The broker is acting without proper authority and can be held liable for any consequences of their actions.
A broker negotiating a sale on behalf of a buyer without the buyer's permission is engaging in an unauthorized transaction. This is a serious issue in the business and legal world because it can lead to various forms of liability for the broker, especially when it comes to real estate or stock transactions.
Brokers are generally required to have express consent from their clients to act on their behalf. Without such permission, any actions taken can be contested by the buyer, and the broker may face disciplinary actions from regulatory bodies, potential lawsuits, or other legal consequences.