Michigan License Law Practice Test

Under what condition must Broker Gary appoint an associate broker to supervise a new branch office?

1. If it is located in a shopping mall

2. If it is more than 30 miles from the main office

3. If it is more than 25 miles from the city limits

4. If it has more than 10 employees

The correct answer is: If it is more than 25 miles from the city limits

The requirement for Broker Gary to appoint an associate broker to supervise a new branch office is based on the distance of the branch office from the main office. Specifically, if the branch office is located more than 25 miles from the city limits of the municipality where the main office is situated, an associate broker must be appointed to ensure proper management and adherence to regulations. This stipulation is in place to maintain adequate oversight and consistent operational standards across offices, particularly when geographical distance may complicate regular communication and supervision. Having a dedicated associate broker at a branch office that exceeds the specified distance helps promote compliance with business practices and ensures that the office functions effectively under state licensing laws. The other conditions set forth in the choices do not align with the legal requirements. For example, the distance ranges mentioned in other options do not meet the criteria established by Michigan license law for the necessity of appointing an associate broker.