Unit 8

Question 1

Laws cannot guarantee an ethical or moral marketplace.

Answer 1

True

Question 2

States’ licensing rules and regulations do NOT have the same force and effect as statutory law.

Answer 2

False

Question 3

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.

Answer 3

False

Question 4

Group boycotting, allocation of customers or markets, and tie-in agreements are all prohibited acts under the Sherman Antitrust Act.

Answer 4

True

Question 5

The Institute of Real Estate Management (IREM) is affiliated with the National Association of Real Estate Brokers (NAREB).

Answer 5

False

Question 6

Many trade organizations serve the real estate business. The largest is the National Association of REALTORS® (NAR).

Answer 6

True

Question 7

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.

Answer 7

True

Question 8

When information is taken from the internet, it is always accurate.

Answer 8

False

Question 9

Junk emails are prohibited by what legislation?

Answer 9

CAN-SPAM Act

Question 10

A broker’s policy requires a 7% commission on all listings; no lower commission rate is acceptable. Which statement is TRUE?

Answer 10

The broker may legally set the minimum commission rate acceptable for the firm.

Question 11

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?

Answer 11

The agreement does not violate antitrust laws.

Question 12

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?

Answer 12

18 months

Question 13

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

Answer 13

the procuring cause.

Question 14

When using email to communicate with clients, real estate professionals should

Answer 14

do all of these.

Question 15

The federal law that makes contracts originated, negotiated, and executed over a combination of computer and cell phone enforceable is

Answer 15

UETA.

Question 16

A REALTOR® is BEST described as an individual who is

Answer 16

a real estate licensee and a member of the National Association of REALTORS® (NAR).

Question 17

If a sales associate hints to prospective clients that the commission rate matches the “going rate,” this action is

Answer 17

a violation of antitrust laws.

Question 18

In order for a broker to be paid on an open listing, the broker must

Answer 18

be the procuring cause of the sale.

Question 19

All of the following are prohibited under the antitrust laws EXCEPT

Answer 19

a broker setting a company commission schedule.

Question 20

The primary reason real estate license laws exist is to protect

Answer 20

consumers.

Question 21

When acting as an employee rather than an independent contractor, a sales associate may be obligated to

Answer 21

work set hours.

Question 22

The compensation received by a sales associate of the real estate broker is

Answer 22

subject to negotiation between broker and sales associate.

Question 23

Real estate professionals should do which of the following when using text messages to communicate with clients?

Answer 23

Use clear and concise language and follow any state laws regarding text messaging

Question 24

Regarding the collection of information from visitors to an internet site, brokers should

Answer 24

post a privacy policy and limit the personal information that can be collected from children younger than 13.

Question 25

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?

Answer 25

$387,492

Question 26

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?

Answer 26

The agreement does not violate antitrust laws.

Question 27

What is the compensation plan called if a sales associate’s commission split increases depending on whether the sales associate achieves higher production goals?

Answer 27

Graduated commission split