Question

Under Oregon law, if a principal real estate broker establishes an independent contractor relationship with an associated real estate broker:

a) The principal broker must provide health insurance to the associated broker.
b) The associated broker is no longer subject to the supervision of the principal broker.
c) Both parties are exempt from the Real Estate License Law.
d) The independent contractor agreement must be approved by the Real Estate Agency.

Answer 1

The correct statement regarding an independent contractor relationship between a principal and associated real estate broker under Oregon law is that their agreement must be approved by the Real Estate Agency.

Step-by-step explanation:

Under Oregon law, when a principal real estate broker establishes an independent contractor relationship with an associated real estate broker, the correct statement is that the independent contractor agreement must be approved by the Real Estate Agency.

This means that the correct answer to the student's question is d) The independent contractor agreement must be approved by the Real Estate Agency. In an independent contractor relationship, the associated broker is still subject to the supervision of the principal broker and both parties must comply with the Real Estate License Law. The relationship does not automatically grant benefits such as health insurance, nor does it exempt them from legal obligations or regulations pertaining to real estate professionals.