Ch 14 Flashcards
T/F: The Federal Housing applies to both commercial and residential property
False
The Fed Housing Act applies only to residential property
The Civil Rights Act of 18__ prohibits discrimination in real estate transactions on the basis or race or color
1866
T/F: the 1866 Civil Rights Act applies to any type of real estate—residential or commercial, improved or unimproved
True
In the landmark 1968 case Jones v. ___, the U.S. Supreme Court upheld the constitutionality of the Civil Rights Act of 1866 (which had largely been ignored for 100 years) and ruled that it prohibited “all racial discrimination, private or public, in the sale and rental of property.”
Mayer
Actual damages = aka ___ damages
Compensatory
___ damages cover the losses or expenses incurred, and may also include compensation for the emotional distress and humiliation suffered as a result of the discrimination.
Compensatory
___ damages are intended to punish the defendant and discourage others from discriminating.
Punitive
The ___ prohibits lenders, loan originators, and others from discriminating against mortgage loan applicants based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance
Equal Credit Oportunity Act (ECOA)
To help prevent redlining, the ___ Act requires large mortgage lenders to submit annual reports about their residential lending to government regulators.
Home Mortgage Disclosure Act
The ___ Act is a federal law intended to ensure that people with disabilities have equal access to public accommodations.
The Americans with Disabilities Act
As defined by the ADA, a ___ is a physical or mental impairment that substantially limits one or more major life activities.
disability
Under the ADA, a ___ is a nonresidential place that is owned, operated, or leased by a private entity and open to the public, if operations of the facility affects commerce.
Public accomodation
Restraint of trade
any act that prevents a person or company from doing business in a certain area or with certain people.
In antitrust law, a ___ is when two or more businesses participate in a common scheme that has the effect of creating an unreasonable restraint of trade
Conspiracy
The preeminent antitrust federal law (passed in 1890) =
The Sherman Act
California’s Cartwright Act was passed in __
1907
T/F: A real estate agent or company that violates antitrust laws may be sunject to both criminal and civil penalties
True
A corporation can be fined up to ____ dollars
100 million
An individual guilty of violating the Sherman Act can be fined up to ___ dollars and/or sentenced to __ years’ imprisonment.
1 million
10 years
To avoid creating the appearance of price fixing, licensees from different brokerages should never discuss ___
Commission rates
T/F: Printed materials that appear to fix prices by publishing “recommended” commission rates are prohibited.
True
___ is the cooperative setting of prices or price ranges (or commission rates) by two or more competing firms.
Price fixing
T/F: Even a casual announcement that a broker intends to raise commission rates could violate antitrust laws.
Howevers, a broker may discuss commission rates with his own sales agents and 2 competing brokers may discuss the amount of a specific commission split bt listing broker and selling broker in a cooperative sale
True
A ___ = an agreement between two or more business competitors (such as real estate brokers from different firms) to exclude another competitor from fair participation in business activities.
Group boycott
T/F: The purpose of a group boycott is to hurt or destroy a competitor
True
That violates antitrust laws
T/F: If a real estate broker feels that another broker is dishonest or unethical, she may choose not to do business with him and try to persuade other brokers to shun him.
False
The broker can choose not to do business with him but it would be illegal to try to get other brokers to shun him
A ___ is an agreement to sell one product only on the condition that the buyer also purchases a different product (referred to as a tied product).
tie-in arrangement (aka tying arrangement)
T/F: Tie/in arrangements are illegal
True
They violate antitrust laws
T/F: Requiring a list-back agreement as a consition of sale violates antitrust laws
True
BUT list-back agreements are legal if both parties willingly wnter into the agreement
T/F: It’s illegal for competing businesses to enter into an agreement dividing up their market among themselves.
True
Competing businesses are not allowed to agree that one of them won’t sell certain products or services in specified areas, or won’t sell to certain customers in specified areas.
In order to avoid violating antitrust laws, real estate firms should:
- always establish their fees and other listing policies independently, without consulting competing firms;
- never use listing forms that contain pre-printed commission rates;
- never imply that a commission rate is fixed or nonnegotiable;
- never discuss their business plan with competitors;
- never tell clients or competitors that they won’t do business with a competing firm; and
- always train licensees to be aware of possible antitrust law violations.
T/F: agents may call people who have listed themselves in the Federal Trade Commission’s Do Not Call Registry but only during certain hours
False
Agents making cold calls must comply with the same laws that restrict large telemarketers.
When may an agent call someone on the Do Not Call list
- an agent may call a former client who is on the list, but only for 18 months following their most recent transaction.
- An agent may also call someone on the list who asked to be contacted by the agent or the firm within the last three months.
T/F: An agent may not block Caller ID or call outside permissible calling hours.
True
The CAN-SPAM Act is a ___ (federal / state) law that regulates electronic marketing messages, including those that an agent might send as advertisements.
Federal
Under the ___ act, all commercial emails and text messages (not just unsolicited ones) must contain instructions on how the recipient can opt out of receiving future messages from the sender.
CAN-SPAM
Antitrust Laws
Antitrust laws, including the federal statute known as the Sherman Act, are intended to promote business competition for the public good.
They prohibit agreements (called conspiracies in the Sherman Act) that have the effect of an unreasonable restraint of trade.
Practices that violate antitrust laws include price fixing, group boycotts, tie-in arrangements, and market allocation.
___ is the cooperative setting of prices by competing firms, in violation of antitrust laws.
Price fixing
A ___ is an agreement between two or more competing businesses to exclude another business from fair participation in the market.
Antitrust laws prohibit these
group boycott
A ___ arrangement is an agreement to sell one product only on the condition that the buyer also purchases a different product.
These arrangements violate antitrust laws.
Tie-in arrangement
___ occurs when competing businesses agree to divide up their market in some way, allocating certain products or customers or locations between them as their exclusive domains.
This allocation violates antitrust laws.
Market allocation
Real estate agents who are cold calling must avoid calling households that are included on the ___, which is maintained by the Federal Trade Commission.
Do Not Call Registry
The __ Act requires all commercial emails and text messages to provide a way for recipients to opt out of receiving future messages from the sender.
CAN-SPAM
