Session 17

Question 1

Arbitration

Answer 1

A method for resolving disputes out of court whereby an impartial third party renders a binding decision. This is the method by which disputes between realtor brokers may be resolved.

Question 2

Code of ethics

Answer 2

He said the principles and standards based on core values by which a group of professionals are expected to conduct themselves.

Question 3

Established business relationship (EBR)

Answer 3

A relationship that may allow a telemarketer or seller to call consumer for up to 18 months after the consumers last purchase, delivery, or payment even if the consumers numbers on the national do not call registry.

Question 4

Fraud

Answer 4

An intentional perversion of the truth for the purpose of inducing another, in reliance upon it, to part with something of value or to surrender illegal legal right. The elements of are (a) intentional misstatement of fact (b) the misstatement of fact must be material; and (c) The defrauded party must have relied on the statement.

Question 5

Interstate land sales full disclosure act

Answer 5

A federal law that protects consumers from fraud and abuse in the sale or lease of land. The act is regulated through the US department of housing and urban development (HUD) and attempts to prevent marketing schemes that entice consumers to purchase land site unseen.

Question 6

Mediation

Answer 6

The process whereby case is already filed with the court or accelerated by referring certain matters to a court referee.

Question 7

Misrepresentation

Answer 7

A misstatement of a material fact.

Question 8

National Association of realtors (NARS)

Answer 8

America’s largest trade association, representing members involved in all aspects of the residential and commercial real estate industries, including brokers, sales people, property managers, appraisers, and counselors.

Question 9

National do not call registry

Answer 9

National registry managed by the federal trade commission that limits commercial telemarketers from phoning consumers who place their telephone numbers on a list.

Question 10

Negligence

Answer 10

Conduct that falls below the standard of care a reasonable person would exercise under the circumstances; an unintentional bridge of the legal duty resulting from carelessness, recklessness, or incompetence. Negligence that causes harm is a tort.

Question 11

Realtor

Answer 11

Any real estate licensee who is a member of the national Association of realtors and his or her affiliated state/local boards. Only members may use the term realtor as it is a registered trademark of NAR.

Question 12

Anti-trust

Answer 12

An area of federal law concerned with maintaining competition in private markets by prohibiting unlawful restraint on trade.

Question 13

Bankruptcy

Answer 13

The court process that cancel some debt and provide some relief for creditors. Chapter 7 sometimes called a straight, is a liquidation proceeding; chapter 13, sometimes called a re-organization proceeding, it’s filed by individuals who want to pay off their debt’s over a period of 3 to 5 years.

Question 14

Civil litigation

Answer 14

A lawsuit in which one individual sues another for compensation.

Question 15

Jurisdiction

Answer 15

The extent of a particular courts authority, either limited by geography type of lawsuit, or monetary limits.

Question 16

Justice court

Answer 16

An Arizona court, presided over by justice of the peace, that hears civil lawsuits where the amount of dispute is 10,000 or less, landlord tenant disputes (eviction) as well as traffic cases in misdemeanors.

Question 17

Market allocation

Answer 17

An anti-trust violation where competitors agree to not compete with each other in specific markets by dividing up geographic areas, types of products, or types of customers. Also called: territory allocation.

Question 18

Price fixing

Answer 18

Two or more brokers from competing companies agreeing to set commission rates. This is illegal and is in violation of the Sherman antitrust act.

Question 19

Superior court

Answer 19

Arizona’s court of general jurisdiction that hears civil cases with no upper limit and felony criminal cases.

Question 20

Tie in agreement

Answer 20

An anti-trust violation in which one transaction or agreement is contingent on a second transaction or agreement. Also called tying agreement.

Question 21

Blind Ad

Answer 21

An advertisement in which a license he attempts to advertise the property for sale without disclosing his or her licensee status, or when a licensee attempts to mislead the public into believing a property is for sale by owner.

Question 22

CC & R’s

Answer 22

The declaration of covenants, conditions, and restrictions; usually recorded by A developer to create a general plan of private restrictions for a subdivision.

Question 23

Homeowners association

Answer 23

A nonprofit association comprised of homeowners in the subdivision, responsible for enforcing the subdivisions CC & R’s And managing other community affairs.

Question 24

Stigmatized property

Answer 24

A property that is undesirable to most people because of a past event, such as a crime or death. Such stigmas are not considered material facts that must be disclosed.

Question 25

Controlling the assault of non-solicited pornography and marketing act (CAN - SPAM)

Answer 25

A federal law enacted to curb unsolicited commercial email, or spam, to both computers and wireless devices without prior permission. Requires an opt-out provision.