Unit 8 Flashcards
Laws cannot guarantee an ethical or moral marketplace.
True
States’ licensing rules and regulations do NOT have the same force and effect as statutory law.
False
Price-fixing, which is the practice of setting prices for products or services rather than letting competition in the open market establish those prices, is legal.
False
Group boycotting, allocation of customers or markets, and tie-in agreements are all prohibited acts under the Sherman Antitrust Act.
True
The Institute of Real Estate Management (IREM) is affiliated with the National Association of Real Estate Brokers (NAREB).
False
Many trade organizations serve the real estate business. The largest is the National Association of REALTORS® (NAR).
True
The purpose of the Electronic Signatures in Global and National Commerce Act (E-Sign) is to make contracts (including signatures) and records legally enforceable, regardless of the medium in which they are created.
True
When information is taken from the internet, it is always accurate.
False
Junk emails are prohibited by what legislation?
CAN-SPAM Act
A broker’s policy requires a 7% commission on all listings; no lower commission rate is acceptable. Which statement is TRUE?
The broker may legally set the minimum commission rate acceptable for the firm.
Sales associate A and sales associate B work for the same firm. They agree to divide their region into an eastern half and a western half; sales associate A will handle listings in the east, and sales associate B will handle listings in the west. Which statement is TRUE?
The agreement does not violate antitrust laws.
Even if a consumer has requested placement on the National Do Not Call Registry, a real estate professional may call the consumer up to how many months after the consumer’s last purchase, delivery, or payment?
18 months
An owner tells a group of brokers, “I will pay a commission to whoever brings me a buyer.” In this case, the broker who is going to get paid must be
the procuring cause.
When using email to communicate with clients, real estate professionals should
do all of these.
The federal law that makes contracts originated, negotiated, and executed over a combination of computer and cell phone enforceable is
UETA.
A REALTOR® is BEST described as an individual who is
a real estate licensee and a member of the National Association of REALTORS® (NAR).
If a sales associate hints to prospective clients that the commission rate matches the “going rate,” this action is
a violation of antitrust laws.
In order for a broker to be paid on an open listing, the broker must
be the procuring cause of the sale.
All of the following are prohibited under the antitrust laws EXCEPT
a broker setting a company commission schedule.
The primary reason real estate license laws exist is to protect
consumers.
When acting as an employee rather than an independent contractor, a sales associate may be obligated to
work set hours.
The compensation received by a sales associate of the real estate broker is
subject to negotiation between broker and sales associate.
Real estate professionals should do which of the following when using text messages to communicate with clients?
Use clear and concise language and follow any state laws regarding text messaging
Regarding the collection of information from visitors to an internet site, brokers should
post a privacy policy and limit the personal information that can be collected from children younger than 13.
Assuming that the listing broker and selling broker split their commission from a transaction equally, what was the sales price of a rural property if the commission rate was 6.5% and the listing broker received $12,593.50?
$387,492
Two sales associates who work for the same firm agree to divide their town into a northern region and a southern region; one sales associate will handle listings in the north, and the other will handle listings in the south. Which statement is TRUE?
The agreement does not violate antitrust laws.
What is the compensation plan called if a sales associate’s commission split increases depending on whether the sales associate achieves higher production goals?
Graduated commission split
