A customer placed an order with an investment adviser to sell 100 shares of ABC to receive cash for an urgent purchase the next day, and he instructed the adviser to limit any losses. The adviser did not have discretionary authority over the account and waited to sell the shares, hoping to get a better price for the customer. The price of the shares went down, so the adviser sold 50 ABC shares to limit the customer's losses. According to the Uniform Securities Act, this is a:
A) violation because the adviser is required to execute sell transactions immediately after the order is placed.
B) permissible activity because the adviser is not permitted to guarantee a price to a customer.
C) permissible activity because the adviser is obligated to get the best price for the customer.
D) violation because the adviser acted without discretionary authority.
Answer: violation because the adviser acted without discretionary authority.