Professional Ethics - Lesson 12

Which of the following would be a violation of the Sherman antitrust act A. establish a commission schedule within a group of brokers B. charging a higher commission that is customary for the area C. sharing a commission with a licensee who works for another brokerage D. charging a below market commission rate to attract customers

A Establishing a commission schedule within a group of brokerages is conspiracy to fix prices. it is a violation of the Sherman antitrust act, which is the anti monopoly act

The national do not call registry regulations require companies to update their national customer lists every A. 31 days B. 60 days C. 3 months D. 3 months

A National customer DNC lists must be updated every 31 days

Buyer Bruce is planning to purchase a property where he can operate a small mechanic's shop out of his home. He eventually finds a property he likes and tells listing agent Lisa his plans. However, after closing he finds out that there are deed restrictions that prevent him from operating such a business from his home. Which of the following is TRUE? A. Since the agent knew the buyer's intended use, she should have investigated whether it was feasible or informed the buyer that their agent should investigate it. B. The agent represented the seller and did not have a duty of loyalty to the buyer. C. The seller always has to disclose the zoning on a property. D. The real estate agent was the one responsible for investigating deed restrictions.

A The seller's agent does not owe a duty of loyalty to the buyer, so she is not required to investigate anything on the buyer's behalf. However, the duty of honesty and good faith probably requires her to at least recommend to the buyer that he or his agent should investigate the matter further. The listing agent should know that zoning or deed restrictions would prevent most residential properties from being used for a mechanic's shop; the issue is a material fact, and not advising the buyer to look into it could be considered unethical and could lead to a lawsuit.

Companies must honor a customers request to opt out of future emails and text messages within A. 10 business days B. 0 calendar days C. 45 business days D. 3 months

A Under CAN-SPAM every electronic solicitation must include some clear opportunity to opt out of future communications, and companies must honor a recipients opt out request within 10 days

Maya and Andrew are real estate agents who work for competing brokerages. They don't like a new discount broker and decide together not to show any of the new broker's listings. This is a violation of the 'Sherman Act because it's: A. a group boycott B. a tie-in arrangement C. market allocation D. price fixing

A a group boycott would include an agreement between two competitors to exclude other companies from fair participation in real estate activities

How often must a consumer register with the do not call to keep a phone number on the national do not call registry A. just once B. every three months C. every year D. every three years

A consumers are required to register only once to maintain their home or mobile telephone numbers on the national DNC registry permanently

A real estate agent would like to contact a buyer that they previously represented to ask if that person would be interested in listing her home or if she has any referrals. Under what circumstances could the agent contact that person without having to consult the Do Not Call Registry? A. He represented the buyer within the previous 6 months. B. He represented the buyer within the previous 18 months. C. There is no limit; he can contact the buyer regardless. D. He may never contact the buyer.

B An agent who has an established business relationship with a previous client may call that person within the 18 months following that person's last transaction, even if that person has placed their name on the Do Not Call Registry. (If that person then asks the agent to stop calling, though, the agent must honor that request.)

antitrust laws are in place to ensure that A. all monies in financial transactions are accounted for B. competition in the marketplace is fair and unrestrained C. licensees have a minimum level of education and training to protect the public D. no one is discriminated against because of race, sex, or national origin

B Antitrust laws were enacted to ensure that there are no restraints on trade

A seller obtained listing presentations from three different agents. The first one proposed a price of $700,000. The second one proposed a price of $800,000. The third agent didn't perform a CMA and simply set the price at $900,000. The property eventually sold for $720,000. The third agent's actions could best be described as an A. failure to disclose. B. misrepresentation. C. negligence. D. puffing.

C An agent's failure to properly perform a competitive market analysis, if it were to rise to the level of a license law violation, would most likely fall within the category of negligence; it's not a false statement (a misrepresentation), but it does suggest a failure to use the level of care expected of a reasonable real estate agent.

Of these, which is the MOST LIKELY to be considered an example of puffing? A. beautifully maintained colonial located in historic district B. country charm on this 5 acre beauty C. great bargain on the most prestigious street in town D. stunned lakefront views from this modern condominium

C Puffing is generally considered to be an opinion that is not necessarily intended to be a statement of fact. The use of an adjective such as "stunning" is not necessarily puffing. Calling a street the "most prestigious in town," however, would qualify as puffing.

Which of these phrase would MOST LIKELY be evidence of conspiracy to commit an antitrust violation A. if you list with us, just be aware that we will use only YES title for the closing B. lets do something about her discount fee policy C. we would like you to consider using our in house mortgage broker to get your loan D. you can have the listings north of broad street, and ill take the ones south of broad

C making a recommendation is not an antitrust violation, unless the use of that service provider is a required condition of doing business

A seller tells a prospective buyer that the attic's insulation is 16 inches thick. The seller's agent, however, observes that the insulation is only six inches thick. The seller's agent should A. say nothing, but advise the buyer to get an inspection. B. say nothing because of the duty of loyalty to the seller. C. say nothing because this does not rise to the level of material fact. D. tell the prospective buyer that the insulation is only six inches thick.

D A licensee has the duty to disclose material facts to the appropriate party, even if the principal doesn't disclose that information himself. The insulation depth could be a material fact, since insufficient insulation could have a negative effect on the property's value.

An agent sends faxes to clients highlighting prospective properties that they might like. The faxes should always include A. address of each property B. agents license number C. brokerage phone number D. instructions on how to opt out of receiving more faxes

D Senders of fax advertisements must include a notice that informs recipients how to opt out of receiving further faxes

Which is NOT one of the sections in the realtor code of ethics A. duties to clients and consumers B. duties to other realtors C. duties to the public D. duties to real estate licensees

D The code of ethics does not address duties to real estate licensees in general, though it does address duties to other realtors. This is in addition to duties to the public and to clients/customers

The national do not call registry is managed by what federal entity? A. department of housing and urban development B. deferral housing agency C. federal reserve board D. federal trade commission

D The national do not call registry is managed by the FTC, the nations consumer protection agency