My question though is why would they mention the buyer in the answer. That makes the answer incorrect to some degree. I agree that 1 is the answer, but by stating that a listing agreement is a contract between buyer and broker..... that is not correct. It is just a poorly written answer is what I am saying.

Thanks for commenting on this. There have been a lot of odd questions in Laura's course and I will be sharing a few of them here to get everybody's thoughts on them. This one is not nearly the worst, but it makes you stop and wonder if you are missing something; I think the answer should have left the buyer out of it because there is no reason to mention the buyer.