Chapter 2

Question 1

A conflict of interest exists when:

a. an agent has a positive or negative bias toward an opposing party in a transaction.
b. the agent’s bias might hinder their ability to fully represent the needs of their client.
c. Both a. and b.
d. Neither a. nor b.

Answer 1

C

Question 2

A(n) __________ is a broker who simultaneously represents the best interest of opposing parties in a transaction, e.g., both the buyer and the seller.

a. dual agent
b. secret agent
c. subagent
d. finder

Answer 2

A

Question 3

The seller’s broker has __________ owed to all parties in the transaction, including the non-client buyer.

a. a general nonfiduciary duty
b. a specific fiduciary duty
c. a general fiduciary duty
d. no duty

Answer 3

A

Question 4

Funds belonging to others which a broker and their agents handle when acting in a transaction are called:

a. assets.
b. trust funds.
c. bonds.
d. security deposits

Answer 4

B

Question 5

A broker must regularly account to an owner on the status, expenditure and location of negotiable trust funds, called a(n):

a. balance sheet.
b. deposit receipt.
c. owner’s statement.
d. amortization schedule.

Answer 5

C

Question 6

The Federal Fair Housing Act (FFHA) prohibits discrimination in the sale, rental and advertisement of:

a. residential units.
b. commercial properties.
c. industrial properties.
d. personal property.

Answer 6

A

Question 7

_________ involves the restriction of a person seeking to buy or rent a dwelling in a community in a manner that perpetuates segregated housing patterns.

a. Blockbusting
b. Redeveloping
c. Redlining
d. Steering

Answer 7

D

Question 8

California’s Unruh Civil Rights Act specifically prohibits discrimination on behalf of:

a. businesses.
b. government institutions.
c. individuals.
d. educational institutions.

Answer 8

A

Question 9

_________ are practices which are not openly discriminatory, but result in discriminatory effects.

a. Implicit discrimination
b. Sanctioned discrimination
c. Overt discrimination
d. Complicit discrimination

Answer 9

A

Question 10

California anti-discrimination law is enforced by the:

a. Department of Fair Employment and Housing.
b. Fair Employment and Housing Commission.
c. Department of Housing and Urban Development (HUD).
d. Both a. and b.

Answer 10

D