Unit 8

Question 1

Broker

Answer 1

Licensed to buy/sell/exchange/lease. May operate as sole proprietorship, partnership, corporation, LLC

Question 2

Brokerage

Answer 2

May be independent or part of a regional or national franchise

Question 3

Sales associate

Answer 3

salesperson or broker who is licensed to perform activities only on behalf of a licensed broker

Question 4

Broker employer

Answer 4

Liable for actions of the sales associate within the scope of the employment agreement

Question 5

Independent contractor

Answer 5

Employee who usually receives a commission, with no withholding for SS, income tax, and has freedom to set hours and accomplish goals

Question 6

Employee

Answer 6

May receive salary in lieu of or in addition to commisson; may receive benefits, health insurance, profit sharing, worker’s comp. Employers set hours, duties, day to day work activities. Employers are held liable for employee’s action

Question 7

Real estate agents and taxes

Answer 7

IRS requires to be treated as non employee for tax purposes

Question 8

Real estate assistant

Answer 8

May be a licensed employee compensated by broker. If not licensed, paid by either sales associate/broker and is limited in the activities than can be undertaken

Question 9

Broker’s compensation

Answer 9

Can be based on sale’s price, flat fee, or hourly rate

Question 10

When is commission earned?

Answer 10

When seller accepts offer from a Ready, Willing, and Able buyer prepared to buy on the seller’s terms and ready to take positive steps towards consummation of transaction

Question 11

Fee for services

Answer 11

Broker’s compensation is based on charges for separate activities that a client desires (unbundling of services)

Question 12

Antitrust laws

Answer 12

Both state and federal. Sherman Antitrust Act prohibits monopolies and conspiracies that unreasonably restrain trade; including price fixing, group boycott, allocation of customers or markets, and tie in agreements

Question 13

Price fixing

Question 14

Group boycott

Question 15

Allocation of customers or markets

Question 16

Tie-in agreements

Answer 16

Force customers to purchase a product when only another was wanted

Question 17

Internet Data Exchange (IDX) policy, of the National Association of REALTORS

Answer 17

Allows members to limit internet distribution of listing info.

Question 18

Uniform Electronic Transactions Act

Question 19

Electronic Signatures in Global and National Commerce Act (E-sign)

Answer 19

Electronic transactions law in states that have not enacted UETA and makes contracts, signatures, and records legally enforceable, regardless of the medium in which they were created

Question 20

National Do Not Call Registry

Answer 20

Regulated by Federal Trade Commission lists phone numbers of consumers who have asked to be registered and prohibits interstate calls to sell goods or services

Question 21

CAN-SPAM Act

Question 22

COPPA