Chapter 11 Review: Advertising and Marketing

Question 1

Expressing an opinion about a property, such as, “It’s the nicest house in the neighborhood”, is an example of

Answer 1

puffing

Question 2

A false statement of a material fact that someone relies on, to her detriment, is called

Answer 2

misrepresentation

Question 3

____________ _______________ occurs when the licensee makes a false statement that he “thinks, hopes, guesses or wishes” were true

Answer 3

Negligent misrepresentation

Question 4

Cold calling is a very risky approach to marketing due to the statute called

Answer 4

Do Not Call

Question 5

According to CAN SPAM, any advertising email that you send must clearly state that it is an

Answer 5

advertisement

Question 6

In order for your advertising to comply with Fair Housing law, it is always best to describe the _______ rather than the people who might like to buy it.

Answer 6

property

Question 7

Under Regulation Z of the Truth-in-Lending Act (TILA), trigger terms are:

Answer 7

Down payment
Amount of any installment
Finance charge in dollars or that there is no charge
A specific number of payments or installments
The period of repayment

Question 8

Use of a trigger term requires full disclosure of all of these items:

Answer 8

Down payment amount or % of down payment
Terms of the repayment
Annual percentage rate and whether an increase is possible

Question 9

This occurs when someone intentionally lies or misrepresents to take advantage of another person, and causes financial harm to that person

Answer 9

intentional misrepresentation (is fraud)

Question 10

This occurs when a licensee does not know or had no reason to know about a problem with the property

Answer 10

innocent misrepresentation