Will a California real estate agent get in trouble if he refuses to submit a low-ball offer?

Jennifer was driving by one day in Los angeles when she saw a sign infront a house, "Bank owned" sale, price: $500,000, contact John at Re/max. Jennifer immediately calls John using her cell phone and asked if house is still available. John says it's still available and no offer yet. Jennifer... show more Jennifer was driving by one day in Los angeles when she saw a sign infront a house, "Bank owned" sale, price: $500,000, contact John at Re/max.

Jennifer immediately calls John using her cell phone and asked if house is still available. John says it's still available and no offer yet.

Jennifer then tells John that she would like to submit a low-ball offer at 70% of asking price of $350,000. John immediately gets upset and tells Jennifer that she can submit low-ball offers as many times as she wants but he won't allow any of his agents to help her because it would be wasting time and bank won't accept it.

John also advises that if she doesn't fill out the paper work correctly, he won't even consider it as an offer.

Remember this conversation was done entirely through a phone call and nothing was signed.

Is there any problem with this dialogue related to DRE's rules and regulation and contact between an agent and a potential client? Any problem for John with DRE?
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