Ch 14

Question 1

T/F: The Federal Housing applies to both commercial and residential property

Answer 1

False

The Fed Housing Act applies only to residential property

Question 2

The Civil Rights Act of 18__ prohibits discrimination in real estate transactions on the basis or race or color

Answer 2

1866

Question 3

T/F: the 1866 Civil Rights Act applies to any type of real estate—residential or commercial, improved or unimproved

Answer 3

True

Question 4

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.”

Answer 4

Mayer

Question 5

Actual damages = aka ___ damages

Answer 5

Compensatory

Question 6

___ 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.

Answer 6

Compensatory

Question 7

___ damages are intended to punish the defendant and discourage others from discriminating.

Answer 7

Punitive

Question 8

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

Answer 8

Equal Credit Oportunity Act (ECOA)

Question 9

To help prevent redlining, the ___ Act requires large mortgage lenders to submit annual reports about their residential lending to government regulators.

Answer 9

Home Mortgage Disclosure Act

Question 10

The ___ Act is a federal law intended to ensure that people with disabilities have equal access to public accommodations.

Answer 10

The Americans with Disabilities Act

Question 11

As defined by the ADA, a ___ is a physical or mental impairment that substantially limits one or more major life activities.

Answer 11

disability

Question 12

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.

Answer 12

Public accomodation

Question 13

Restraint of trade

Answer 13

any act that prevents a person or company from doing business in a certain area or with certain people.

Question 14

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

Answer 14

Conspiracy

Question 15

The preeminent antitrust federal law (passed in 1890) =

Answer 15

The Sherman Act

Question 16

California’s Cartwright Act was passed in __

Answer 16

1907

Question 17

T/F: A real estate agent or company that violates antitrust laws may be sunject to both criminal and civil penalties

Answer 17

True

Question 18

A corporation can be fined up to ____ dollars

Answer 18

100 million

Question 19

An individual guilty of violating the Sherman Act can be fined up to ___ dollars and/or sentenced to __ years’ imprisonment.

Answer 19

1 million

10 years

Question 20

To avoid creating the appearance of price fixing, licensees from different brokerages should never discuss ___

Answer 20

Commission rates

Question 21

T/F: Printed materials that appear to fix prices by publishing “recommended” commission rates are prohibited.

Answer 21

True

Question 22

___ is the cooperative setting of prices or price ranges (or commission rates) by two or more competing firms.

Answer 22

Price fixing

Question 23

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

Answer 23

True

Question 24

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.

Answer 24

Group boycott

Question 25

T/F: The purpose of a group boycott is to hurt or destroy a competitor

Answer 25

True

That violates antitrust laws

Question 26

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.

Answer 26

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

Question 27

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).

Answer 27

tie-in arrangement (aka tying arrangement)

Question 28

T/F: Tie/in arrangements are illegal

Answer 28

True

They violate antitrust laws

Question 29

T/F: Requiring a list-back agreement as a consition of sale violates antitrust laws

Answer 29

True

BUT list-back agreements are legal if both parties willingly wnter into the agreement

Question 30

T/F: It’s illegal for competing businesses to enter into an agreement dividing up their market among themselves.

Answer 30

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.

Question 31

In order to avoid violating antitrust laws, real estate firms should:

Answer 31

• 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.

Question 32

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

Answer 32

False

Agents making cold calls must comply with the same laws that restrict large telemarketers.

Question 33

When may an agent call someone on the Do Not Call list

Answer 33

• 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.

Question 34

T/F: An agent may not block Caller ID or call outside permissible calling hours.

Answer 34

True

Question 35

The CAN-SPAM Act is a ___ (federal / state) law that regulates electronic marketing messages, including those that an agent might send as advertisements.

Answer 35

Federal

Question 36

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.

Answer 36

CAN-SPAM

Question 37

Antitrust Laws

Answer 37

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.

Question 38

___ is the cooperative setting of prices by competing firms, in violation of antitrust laws.

Answer 38

Price fixing

Question 39

A ___ is an agreement between two or more competing businesses to exclude another business from fair participation in the market.

Antitrust laws prohibit these

Answer 39

group boycott

Question 40

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.

Answer 40

Tie-in arrangement

Question 41

___ 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.

Answer 41

Market allocation

Question 42

Real estate agents who are cold calling must avoid calling households that are included on the ___, which is maintained by the Federal Trade Commission.

Answer 42

Do Not Call Registry

Question 43

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.

Answer 43

CAN-SPAM