Under fiduciary duties, what is an agent required to do?

The correct choice highlights the essential aspect of an agent's responsibility under fiduciary duties, which is to act in the best interests of their principal. When an agent reports any rumors to the principal, they are fulfilling their duty of loyalty and full disclosure. This means that the agent is obligated to inform their client about all relevant information that could affect their decision-making process. Doing so builds trust and transparency, which are foundational aspects of the fiduciary relationship.

In contrast, maintaining public confidence above all else does not align with the primary duty of prioritizing the principal's interests. Reporting rumors directly to the principal ensures that they can make informed decisions based on the most accurate and updated information. Prioritizing the interests of buyers over those of sellers suggests a lack of loyalty to the principal, while concealing information from the buyer does not uphold the transparency required in a fiduciary relationship. Therefore, the obligation to report any rumors to the principal is critical in maintaining the trust and effectiveness of the agent-principal dynamic.