Ch 14 Test

Question 1

Refusing to make loans in a particular neighborhood because of its racial or ethnic composition = ___

Answer 1

Redlining

Question 2

An advertisement for a condominium project that states that units in the project are available for sale to “adults only” may be in violation of the:

A. Civil Rights Act of 1866
B. Civil Rights Act of 1964
C. Civil Rights Act of 1968
D. All of the above

Answer 2

C. Civil Rights Act of 1968

Question 3

Which of the following is considered a disability for the purposes of the federal Fair Housing Act?
A. AIDS
B. Mental impairment
C. Blindness
D. All of the above

Answer 3

D. All of the above

Question 4

A seller asked her broker about the ethnic background of a prospective buyer. The broker:
A. must answer the question, because of the broker’s duty of honesty
B. must not answer the question, since that would be a violation of the Rumford Act
C. must answer, but also advise the seller that she can’t decide whether to sell based on the buyer’s ethnicity
D. may answer the question, if the buyer consents to the disclosure

Answer 4

B. must not answer the question, since that would be a violation of the Rumford Act

Question 5

Which of the following transactions could be exempt from the federal Fair Housing Act?
A. Rental of a unit in a six-unit apartment building, if the owner does not reside on the property
B. Rental of a unit in a ten-unit apartment building, if the owner occupies one of the units
C. Sale of a single-family home by the owner, with no real estate agent involved
D. Sale of a single-family home listed with a real estate broker

Answer 5

C. Sale of a single-family home by the owner, with no real estate agent involved

Question 6

Broker Bill is the subject of a discrimination complaint based on the federal Fair Housing Act. The complaint is being litigated before an administrative law judge. If the judge finds Broker Bill guilty of violating the act, she may order him to do all of the following except:
A. pay compensatory (actual) damages to the victim
B. pay punitive damages to the victim
C. pay the victim’s attorney’s fees
D. take affirmative steps to correct the violation

Answer 6

B. pay punitive damages to the victim

Question 7

Under the Americans with Disabilities Act:

A. a real estate office is considered to be a public accommodation
B. a disability is defined as any permanent physical impairment
C. architectural barriers that prevent access to goods and services must be removed regardless of cost
D. all multi-story buildings must be equipped with elevators

Answer 7

A. a real estate office is considered to be a public accommodation

Question 8

Mary is renting one of the units in a duplex she owns. She will be exempt from the federal Fair Housing Act, unless she:

A. does not occupy one of the units in the duplex
B. hires a real estate agent to help rent the unit
C. places a classified ad stating that the unit is available to Christians only
D. Any of the above would prevent Mary from claiming the exemption

Answer 8

D. Any of the above would prevent Mary from claiming the exemption

Question 9

In 1988, the federal Fair Housing Act was amended to prohibit discrimination based on:

A. substance abuse or age
B. marital or familial status
C. disability or familial status
D. disability or occupation

Answer 9

C. disability or familial status

Question 10

All of the following activities could be considered unlawful price fixing in violation of antitrust laws, except:

A. a discussion between two competing brokers about their respective commission rates
B. publication of a report on commission rates charged by members of a multiple listing service
C. a discussion between a broker and a salesperson working for the broker regarding commission rates charged by the brokerage
D. a public announcement by a broker that he intends to raise his commission rates in the coming year

Answer 10

C. a discussion between a broker and a salesperson working for the broker regarding commission rates charged by the brokerage

Question 11

An owner of a single-family home who sells the home without the help of a real estate broker is exempt from the requirements of the federal Fair Housing Act:
A. in all cases
B. only if the owner does not own more than three such homes
C. only with respect to discrimination on the basis of familial status or disability
D. only if the owner does not own more than three such homes and the sale does not involve any discriminatory advertising

Answer 11

D. only if the owner does not own more than three such homes and the sale does not involve any discriminatory advertising

Question 12

The federal Fair Housing Act prohibits blockbusting, a practice also known as:

A. panic selling
B. steering
C. redlining
D. slandering

Answer 12

A. panic selling

Question 13

A property has a restriction dating back to the 1920s that limits the sale of the property to persons of the Caucasian race. The owner has entered into a purchase agreement with a buyer. The restriction is:
A. valid and enforceable
B. unenforceable, so the contract is void
C. unenforceable, but the sale can go through
D. enforceable, if the buyer agrees

Answer 13

C. unenforceable, but the sale can go through

Question 14

The California state agency that’s responsible for enforcing antidiscrimination laws is the:
A. Department of Fair Employment and Housing
B. Department of Civil Rights
C. Human Rights Commission
D. Board of Equalization

Answer 14

A. Department of Fair Employment and Housing

Question 15

One important distinction between the Civil Rights Act of 1866 and the federal Fair Housing Act is that:
A. the 1866 Civil Rights Act does not apply to residential transactions
B. the 1866 Civil Rights Act does not prohibit discrimination based on race
C. the Fair Housing Act does not prohibit discrimination based on religion
D. the Fair Housing Act does not apply to nonresidential transactions

Answer 15

D. the Fair Housing Act does not apply to nonresidential transactions

Question 16

Under the federal Fair Housing Act, it isn’t illegal to refuse to sell a condominium unit to a family with children if:
A. the condominium qualifies as housing for older persons, with 80% of the units occupied by at least one person over 55
B. the condominium is advertised as an Adults Only complex
C. the family includes one or more children under ten years old
D. All of the above

Answer 16

A. the condominium qualifies as housing for older persons, with 80% of the units occupied by at least one person over 55

Question 17

The Home Mortgage Disclosure Act:
A. helps to enforce the Fair Housing Act’s prohibition against redlining
B. helps to enforce the Fair Housing Act’s prohibition against steering
C. requires lenders to disclose the annual percentage rate for their residential mortgage loans
D. prohibits kickbacks and referral fees in residential loan transactions

Answer 17

A. helps to enforce the Fair Housing Act’s prohibition against redlining

Question 18

The prohibition against discrimination on the basis of disability (handicap) in the federal Fair Housing Act would not apply to discrimination against a:
A.  chronic alcoholic
B.  heroin addict
C.  person diagnosed as having AIDS
D.  person with a mental disability

Answer 18

B. heroin addict

Question 19

Which of the following transactions might be exempt from the federal Fair Housing Act, but wouldn’t be exempt from California’s Fair Employment and Housing Act?
A. Rental of a room in an owner-occupied single-family home
B. Rental of an apartment in a building not occupied by the landlord
C. Sale of a single-family home
D. Sale of a non-owner occupied duplex

Answer 19

C. Sale of a single-family home