Leasing License Practice Exam

Which of the following is NOT a fiduciary duty?

1. Care

2. Loyalty

3. Evading disclosure

4. Accountability

The correct answer is: Evading disclosure

Fiduciary duties are the obligations that one party has to act in the best interest of another within a relationship of trust and reliance, commonly seen in legal and financial contexts. The duties typically include care, loyalty, and accountability. In this context, evading disclosure is not a fiduciary duty; in fact, it represents a failure to fulfill fiduciary responsibilities. Fiduciaries are required to fully disclose relevant information and avoid actions that might mislead the other party. Thus, the correct interpretation of the duties emphasizes transparency and honesty, highlighting that evading disclosure undermines the core principles of a fiduciary relationship. Care involves managing the other party’s interests with diligence, loyalty ensures allegiance to the interests of the party being served, and accountability emphasizes the fiduciary's responsibility to be answerable for their actions. All these duties serve to enhance trust and protect the interests of the party that is reliant on the fiduciary.