I work for you on your behalf for your benefit.

Working on behalf of someone else's best interests.

I don't explain agency... I explain various forms of representation and what they means to buyers and sellers.

I would provide a copy of the CA Agency Disclosure and review it with them.

Lyn Sims & Chris Ann Cleland, both nailed it!

Competence & Character in a legally binding relationship...

Working to the best of my ability on your behalf and yours only.

Lyn Sims said it as it is.... good definition for you to remember....

I would pull out my phone and do an internet search for Agency and share it with him/her.

We would discuss what that meant to each of us in our current situation.

In Real Estate agency is a binding relationship that has to be based on total honesty by both parties..

Chris Ann Cleland has you covered.

Representation. I work you.

The agent is an agent of the Broker and the Broker is the agent of the client, and nobody is the agent of the customer.

Follow the rules in your state.

Give them the definition that is in the textbook for your prelicense class. Make sure you understand it well enough to be able to explain if you are asked. And that would be a good test question to appear on your state exam.

Agency: Agent see or See agent means just that. You are represented

That it doesn't exist in Oklahoma as we do not have common law in real estate here.

Hand them the Agency Law Pamphlet or simply google it on my phone and show it to them...... If saying that agency is when someone is responsible for and has the duty to act on behalf or for the benefit of another in one or more capacities did'nt work for them.

Good question.  It covered in Unit 16 of prelicense text book, Modern Real Estate Practice. 

Just like any agency, talent, modeling, etc. people working on your behalf to make your money.

representation

I use the attorney / client relationship.

Representation

The type of representation.

Working for the client in their best interest.

I would ask them if they have access to a computer, dictionary or have a library in their town.

a·gen·cy

/ˈājənsē/

noun

1. a business or organization established to provide a particular service, typically one that involves organizing transactions between two other parties.

"an advertising agency"

synonyms:business, organization, company, firm, office, bureau, concern, service 

2. action or intervention, especially such as to produce a particular effect.

"canals carved by the agency of running water"

synonyms: action, activity, effect, influence, force, power, work; More

Lyn has answered 

I recently had a similar question asked by people in Cartersville, GA and a few days later by someone in Atlanta, GA. I try to keep it as simple as possible for them so I told them:
Seller agency means the agent represents the seller
Buyer agency represents the agent represents the buyer
(Pretty much the same everyone else responded)

Agency refers to the company that offers specific services to clienmts or customers.

Is there an instructor at your school?  Still scratching my head and wondering how asking on AR is beneficial?  How did we get so lucky?

Agency equals the relationship you have with a customer. It could be buyer side, seller side or transactional meaning you represent no one here in NH.