A sales associate takes listing in the name of a sponsoring broker. When a dispute arises between the sales associate and the seller,

Terminating the listing is not a necessary action in response to a dispute between a sales associate and the seller. The listing can remain in effect while the broker investigates the issue and determines the appropriate resolution. Termination may occur later if deemed necessary, but it is not an automatic requirement.

While a sales associate may breach a fiduciary duty under certain circumstances, this statement does not universally apply to all disputes. The nature of the dispute must be examined to determine if a breach has occurred. Not all conflicts imply wrongdoing, and many can be resolved without identifying a breach of duty.

This choice incorrectly places sole responsibility on the sales associate. In a brokerage relationship, both the sales associate and the sponsoring broker can share responsibility for actions taken during a listing. The broker's role includes supervising and guiding the sales associate, which means they cannot be absolved of responsibility in disputes.