October 2020 (PM) — Question 2

Why this answer

This is a citation-recall question, and the section headings decide it: 19 CFR 111.37 is titled "Misuse of license or permit" and prohibits a broker from allowing the license, permit, or name to be used by or for any unlicensed person in the solicitation, promotion, or performance of customs business. The 111.36 paragraphs offered as distractors govern a broker's relations with unlicensed persons and freight forwarders — rules about how a broker deals with intermediaries, not about lending out the license itself — and 111.41 addresses different conduct. The 111.36 options tempt because "unlicensed persons" sounds like the vocabulary of misuse. Watch for: Picking a 111.36 relations-with-unlicensed-persons paragraph because it sounds like license misuse.

Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.