Sheree Demming contacted Cheryl Underwood, a real estate broker in the Bloomington, Indiana area. Ms. Demming discussed with Ms. Underwood her strategy for investing in properties in and around Indiana University and then developing them. They had agreed to a 7 commission for Ms. Underwood on any properties purchased. Ms. Deming then asked Ms. Underwood to pursue the purchase of several properties. The owners were not interested in selling initially, but Ms. Deming told Ms. Underwood to keep trying. Ms. Underwood purchased one of the properties Ms. Deming was interested in for herself and then failed to tell Ms. Deming that the seller of one of the other properties was inviting written offers. Which of the following best describes what has occurred here?
A) As a buyer's agent, Ms. Underwood did not owe any duties to Ms. Demming in terms of buying properties for herself.
B) A buyer's agent is free to work with any seller's on her own behalf.
C) Ms. Underwood breached her fiduciary duty to Ms. Demming.
D) A buyer's agent does not have to disclose that a seller has invited offers.
Question 2
New York follows the contact rule in determining when third persons can sue accountants for negligence.
Indicate whether the statement is true or false
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