Chapter 20 - Ethics: Laws and Practices

Question 1

The principal theme of federal fair housing laws is to

a. ensure all Americans a fair chance to own a home.
b. prohibit discrimination in housing transactions.
c. ensure that housing transactions are negotiated fairly.
d. prohibit agents from dealing unfairly with clients and customers.

Answer 1

b. prohibit discrimination in housing transactions.

Question 2

It is illegal to discriminate in selling a house based on race, color, religion, or national origin. This is provided for through

a. the Civil Rights Act of 1866.
b. Executive Order 11063.
c. the Civil Rights Act of 1968.
d. the Fair Housing Amendments Act of 1988.

Answer 2

c. the Civil Rights Act of 1968.

Question 3

Which of the following laws or rulings extended discrimination to include gender, handicapped status, and family status?

a. Executive Order 11063
b. the Civil Rights Act of 1968
c. the Fair Housing Amendments Act of 1988
d. Jones v Mayer

Answer 3

c. the Fair Housing Amendments Act of 1988

Question 4

An agent informs numerous families in a neighborhood that several minority families are planning to move into the immediate area, and that the trend could have adverse effects on property values. This activity is

a. blockbusting.
b. legal but unprofessional redlining.
c. discriminatory misrepresentation.
d. negligent misrepresentation.

Answer 4

a. blockbusting.

Question 5

A minority family would like to buy a home in a certain price range. The agent shows the family all available properties in a neighborhood of families with similar backgrounds. The agent did not mention a number of homes in the family’s price range in other neighborhoods. This agent could be liable for

a. blockbusting.
b. providing unequal services.
c. steering.
d. nothing; his services were legal and acceptable.

Answer 5

c. steering.

Question 6

An agent does not like a particular minority buyer, and is very short with the person, refusing to engage in lengthy conversation or show him any properties. A second minority party visits the office the next day. The agent is very forthcoming, and shows the person five prospective properties. This agent could be liable for

a. providing unequal services.
b. steering.
c. misrepresentation.
d. nothing; both parties were minorities, and therefore no discrimination occurred.

Answer 6

a. providing unequal services.

Question 7

Following the client’s recommendation, an agent conceals the availability of a property from an employed but pregnant and unmarried minority woman. This agent could be liable for

a. discriminatory misrepresentation.
b. steering.
c. violating fiduciary duty.
d. nothing: an agent may show or not show any property at his or her discretion.

Answer 7

a. discriminatory misrepresentation.

Question 8

A condominium complex prohibits ownership of any unit by persons under 55 years of age. The association claims it has made the prohibition properly. Which of the following is true?

a. They are violating the Civil Rights Act of 1866.
b. They are violating the Fair Housing Amendments Act of 1988.
c. They are guilty of age discrimination.
d. The prohibition may be legal.

Answer 8

d. The prohibition may be legal.

Question 9

An owner suddenly pulls a property off the market after hearing from the agent on the phone that the agent had received a full-price offer from a minority party. The agent then informs the offeror that the home has been removed from the market and is unavailable. Which party or parties, if any, have violated fair housing laws?

a. The agent only
b. The owner only
c. The agent and the owner
d. Neither agent nor owner

Answer 9

c. The agent and the owner

Question 10

Real estate trade associations promote a code of ethics primarily to establish

a. minimum standards of practice as imposed by law.
b. fair housing law.
c. high standards of practice for all facets of the business.
d. grounds for license revocation.

Answer 10

c. high standards of practice for all facets of the business.