Utah General Sales License Practice Exam 2025 – All-in-One Study Guide to Succeed!

The situation illustrates ostensible agency between Z and the buyers. Ostensible agency, or apparent agency, occurs when a person is led to believe they are dealing with an agent, even though no formal agency relationship exists. In this case, since Z provided advice to the buyers despite disclosing no representation, it creates a scenario where the buyers may perceive that Z is acting on their behalf or in their interest, indicating an implied agency relationship.

This understanding is crucial because it highlights the responsibilities and expectations that can arise from such interactions. Even if Z did not formally represent the buyers, their actions might imply to the buyers that they have a level of agency. It's important in real estate and other professional settings to ensure clear communication regarding agency representation to prevent misunderstandings and potential legal issues. The scenario emphasizes the significance of clearly defined agency relationships to protect all parties involved.