Unit 8 Exam

Question 1

Is there any problem with Ivy acting so generously on behalf of family and friends?

A)
Yes, she should be charging for her services.

B)
Yes, she may be charged with engaging in activities that require a real estate license.

C)
No, who else would her family and friends go to for such advice?

D)
No, she is free to help whoever she chooses in any capacity.

Answer 1

Explanation
The answer is yes, she may be charged with engaging in activities that require a real estate license. Ivy may face a complaint filed with the state real estate Commission, charging that she is engaging unlawfully in activities that require a real estate license.

Question 2

Does it make any difference that Ivy receives no compensation for helping family and friends?

A)
No, not charging does not prevent the real estate Commission from investigating her conduct.

B)
Yes, because she isn’t charging, there is nothing wrong with her actions.

Answer 2

Explanation
The answer is no, not charging does not prevent the real estate commission from investigating her conduct. The fact that Ivy volunteers to help others with their real estate purchases does not prevent the real estate Commission from investigating whether her conduct is a violation of the real estate law.

Question 3

If Ivy later obtains a real estate license, will she still have a problem?

A)
Yes, her conduct prior to being licensed could still be questioned.

B)
No, getting licensed grandfathers in her previous behavior.

Answer 3

Explanation
The answer is yes, her conduct prior to being licensed could still be questioned. It is doubtful that Ivy could obtain a real estate license while being investigated by the real estate Commission for a possible violation of the real estate law. But even if she could obtain a real estate license, her conduct before obtaining the license could still be questioned.

Question 4

A real estate broker is licensed to buy, sell, exchange, or lease real property for others and to charge a fee for those services.

Answer 4

True

Question 5

Real estate license laws are intended to protect the public.

Answer 5

True

Question 6

Real estate license laws do not include disciplinary systems.

Answer 6

False

Question 7

ARELLO promotes state licensing standards.

Answer 7

True

Association of Real Estate License Law Officials

Question 8

If a state licensing authority’s regulations conflict with statutory law, the regulations will prevail.

Answer 8

False

Question 9

A sales associate can carry out all the same activities as a real estate broker.

Answer 9

False

Question 10

All 50 states regulate the activities of real estate professionals.

Answer 10

True

Question 11

A sales associate’s compensation is determined by the client.

Answer 11

False

Question 12

A real estate broker’s compensation is specified in the contract with the client.

Answer 12

True

Question 13

A real estate assistant would never be required to have a real estate license.

Answer 13

False

Question 14

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

Answer 14

False

Question 15

Laws cannot guarantee an ethical or moral marketplace.

Answer 15

True

Question 16

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 16

False

Question 17

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

Answer 17

True

Question 18

Match the following:

A)
Member of National Association of REALTORS

B)
Affiliate designation of NAR specializing in residential property

C)
Member of the National Association of Real Estate Brokers

D)
Has an established Code of Ethics that REALTORS must subscribe to

E)
Has completed the requirements of the REALTOR Institute

Realtist
CRS
GRI
NAR
REALTOR

Answer 18

Realtist = C

CRS = B
Certified Residential Specialist

GRI = E
Graduate, REALTOR Institute

NAR = D
REALTOR = A

Question 19

Match the Following:

Ethics
Realtist Code of Ethics
Standards of Practice

A)
A System of moral principles, rules, and conduct

B)
Established by the National Association of Real Estate Brokers

C)
Practical applications of the article of the REALTORS Code of Ethics

Answer 19

Ethics = A
Realtist Code of Ethics = B
Standards of Practice = C

Question 20

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

Answer 20

False.

Question 21

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

Answer 21

True.

Question 22

Match the Following:

Internet Data Exchange

Social Media

Electronic Contracting

Spam

National Do No Call Registry

Uniform Electronics Transactions Act

A)
Sets Basic Rules for entering an enforceable contract using electronic means

B)
Internet tools to facilitate the creation and sharing of information

C)
List of phone numbers form consumers who want to limit telemarketing calls

D)
Transactions conducted through email or fax

E)
Allows MLS members equal rights to display MLS data

F)
Unsolicited junk emails

Answer 22

Internet Data Exchange = E

Social Media = B

Electronic Contracting = D

Spam = F

National Do Not Call Registry = C

Uniform Electronics Transactions Act = A

Question 23

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 23

True

Question 24

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

Answer 24

False.

Question 25

Members of professional associations are expected to comply with the

A)
code of ethics as set forth by each organization.

B)
standard operating morals.

C)
code of brokers.

D)
code of standards.

Answer 25

Explanation
The answer is code of ethics as set forth by each organization. Requiring members to comply with the standards of practice and code of ethics and setting forth consequences for noncompliance helps ensure a high level of professionalism from the organization and its members.

Question 26

Commissions are negotiable

A)
when using an exclusive listing agreement, but not an open listing.

B)
unless representing a buyer, when the listing broker offers a co-op.

C)
in all cases.

D)
unless the exclusive agency listing is used, because the seller can compete with the broker.

Answer 26

Explanation

The answer is in all cases. Commissions are always negotiable.

Question 27

What is the practice called when a consumer selects specific services to use and only pays the real estate professional for those services?

A)
Tie-in agreement

B)
Discounted services

C)
Unbundling services

D)
Allocation of markets

Answer 27

The answer is unbundling services. Unbundling services means offering services as the consumer desires them. With discounted services, the consumer receives the full package of services but pays a discounted price. Allocation of markets involves an agreement between brokers to divide their markets and stop competition, and it is illegal.

Question 28

Which law has a feature that commercial email messages must include a means by which the recipient can unsubscribe?

A)
COPPA

B)
CAN-SPAM Act

C)
FCC Act

D)
TCPA

Answer 28

Explanation
The answer is CAN-SPAM Act. The federal Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, known as the CAN-SPAM Act, prohibits junk emails. An important feature of this law, which applies to commercial electronic mail messages, is that email solicitations must include a means by which the recipient can unsubscribe from future messages.

Question 29

Under the Sherman Antitrust Act, the penalty for a person found guilty of fixing prices or allocating markets is

A)
a maximum $1 million fine and 10 years in prison.

B)
$50,000 per transaction up to a maximum of $500,000.

C)
a minimum of $100,000.

D)
a maximum of $100 million.

Answer 29

Explanation
The answer is a maximum $1 million fine and 10 years in prison. For corporations, the penalty may be as high as $100 million.

Question 30

The use of electronic signatures makes routine paperwork more efficient and has been encouraged by adoption by most states of

A)
the Uniform Electronic Transactions Act.

B)
the Real Estate Transactions Act.

C)
the Uniform Brokerage Transactions Act.

D)
the real estate licensing laws.

Answer 30

Explanation
The answer is the Uniform Electronic Transactions Act. The Electronic Signatures in Global and National Commerce Act (E-Sign) applies to those states that have not adopted UETA, and some sections of the law also apply to those states that have adopted UETA.

Question 31

The sale of a single-family house produced a total commission of $45,825. The sales associate who was responsible for bringing the buyer to the transaction has a 60/40 commission split arrangement with the employing broker, with the sales associate receiving the 60 percent. If the total commission was split between the listing and selling firms, what is the commission that the buyer’s sales associate will receive?

A)
$27,495

B)
$13,747.50

C)
$9,165

D)
$8,784.25

Answer 31

Explanation
The answer is $13,747.50. Fifty percent of $45,825 is $22,912.50, and 60 percent of that amount is $13,747.50, which is the buyer’s sales associate’s compensation for the transaction.

45,825 / 2 = 22,912.50

22,912.50 X 0.6 = 13,747.50

(Refer to Circular Formula in Docs)

Question 32

A state has recently updated its Rules and Regulations for the Real Estate Profession. Which statement is most likely TRUE regarding this update?

A)
The rules and regulations are not enforceable against real estate professionals.

B)
The rules and regulations have the same force and effect as the license law itself.

C)
The rules and regulations do not have the same force and effect as the statutory license law.

D)
The rules and regulations are state laws enacted by the legislature.

Answer 32

Explanation
The answer is the rules and regulations have the same force and effect as the license law itself. Each state has a licensing authority with power to issue licenses and create regulations that enforce the statutes of the real estate law.

Question 33

Regulations of agencies that administer real estate license laws

A)
are optional for licensees, though their adherence is always recommended.

B)
have the same force and effect as statutory law.

C)
can be modified, if necessary, to insure compliance by large real estate firms.

D)
can only be changed by the legislature.

Answer 33

Explanation
The answer is have the same force and effect as statutory law. Administrative regulations are created to enforce statutory law and must be complied with by all licensees. They are created by the licensing authority and can be changed by the licensing authority.

Question 34

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

A)
UETA.

B)
CAN-SPAM.

C)
Junk Fax Prevention Act.

D)
COPPA.

Answer 34

Explanation
The answer is UETA. The law sets forth basic rules for entering an enforceable contract using electronic means. The primary purpose of UETA is to remove barriers in electronic commerce that would otherwise prevent enforceability of contracts.

Question 35

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

A)
work set hours.

B)
list properties in the sales associate’s own name.

C)
accept a commission from another broker.

D)
personally pay all withholding taxes.

Answer 35

Explanation
The answer is work set hours. An employee not only accepts the actual duties assigned by the employer but also agrees to the manner in which the employer wants them performed.

Question 36

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

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

B)
The broker must present the uniform commission policy to the local professional association for approval.

C)
A homeowner may sue the broker for violating the antitrust law’s prohibition against price-fixing.

D)
The sales associates associated with the brokerage will not be bound by the requirement and may negotiate any commission rate they choose.

Answer 36

Explanation
The answer is the broker may legally set the minimum commission rate acceptable for the firm. Brokers have the right to set commissions within their own firm. This is not an antitrust violation. Sales associates who wish to continue with that broker can be required to comply.

Question 37

When communicating with clients or consumers via email, all of these are examples of professional email etiquette EXCEPT

A)
using spell check.

B)
avoiding sending large attachments.

C)
responding to emails within one week.

D)
providing useful information in the subject line.

Answer 37

Explanation
The answer is responding to emails within one week. Examples of email etiquette include using the subject line in a useful and helpful manner; avoiding spelling errors; responding promptly to all email messages; and being specific, to the point, and brief. Do not send unsolicited emails.

Question 38

The Do Not Call Improvement Act of 2007 states that real estate professionals may call consumers with whom they have an established business relationship for up to how many months after the consumer’s last purchase, delivery, or payment?

A)
24 months

B)
18 months

C)
12 months

D)
6 months

Answer 38

Explanation

The answer is 18 months. This is true even if the consumer is listed on the National Do Not Call Registry.

Question 39

A qualified buyer makes a written offer on a property on March 6 by filling out and signing a purchase offer. Later that day, the seller accepts and signs the offer, keeping one copy. The broker gives a copy of the signed agreement to the buyer on March 8. The seller’s deed is delivered on May 1. The deed is recorded on May 7, and the buyer takes possession on May 15. When is the broker’s commission payable if this is a usual transaction?

A)
May 7

B)
May 15

C)
May 1

D)
March 8

Answer 39

Explanation
The answer is May 1. Although the commission was earned when the buyer was notified of the seller’s acceptance (March 8), the commission is typically paid at the time the transaction is closed; that is, the purchase price is paid by the buyer and the buyer receives the deed.

Question 40

Which group of people is protected the MOST by real estate license laws?

A)
Real estate firms

B)
Licensees

C)
Government employees

D)
Consumers

Answer 40

Explanation
The answer is consumers. The main objective of real estate license laws is to make sure that the rights of purchasers, sellers, tenants, and owners are protected from unscrupulous or negligent practices.

Question 41

A broker asks a neighbor who is thinking of selling the family home if the broker can present an offer from a prospective buyer, and the neighbor agrees. At this point, which statement is TRUE?

A)
The neighbor is not obligated to pay the broker a commission.

B)
The broker may not be considered the procuring cause without a written contract.

C)
The neighbor is obligated to pay the broker a commission for producing an offer to purchase.

D)
The buyer is obligated to pay the broker for locating the property.

Answer 41

Explanation
The answer is the neighbor is not obligated to pay the broker a commission. At this point, there is no agreement between owner and broker for a service in return for compensation. The broker has done nothing yet that relies on the response of the seller. The buyer might have signed an offer and be ready, willing, and able to buy, but with no contract of employment with the homeowner—either written or oral—there can be no claim for a commission. Moreover, state real estate brokerage regulations generally require that a representation agreement be in writing and signed.

Question 42

broker was accused of violating antitrust laws. Of the following, the broker was MOST likely accused of

A)
dealing in unlicensed exchange services.

B)
not having an equal housing opportunity sign in the office window.

C)
price-fixing.

D)
undisclosed dual agency.

Answer 42

Explanation
The answer is price-fixing. Antitrust laws prohibit group boycotting, allocation of customers and markets, tie-in agreements, and price-fixing. Price-fixing occurs when competing brokers set a standard commission rate.

Question 43

The National Association of REALTORS® has adopted a code of ethics for

A)
its members.

B)
states that have adopted its code.

C)
all real estate professionals.

D)
all real estate licensees.

Answer 43

Explanation

The answer is its members. The National Association of REALTORS® adopted a code of ethics for its members in 1913.

Question 44

A real estate licensee has a written contract with a broker specifying that the licensee will not be treated as an employee. The licensee’s entire income is from sales commissions rather than an hourly wage. Based on these facts, the licensee is considered

A)
a subagent.

B)
an employee.

C)
an independent contractor.

D)
a real estate assistant.

Answer 44

Explanation
The answer is an independent contractor. The licensee meets the IRS’s three requirements to be treated as a self-employed independent contractor: the individual (1) is a real estate licensee, (2) has an agreement with the broker that the licensee will not be treated as an employee for federal tax purposes, and (3) earns the majority of income from the firm in commissions, not wages.

Question 45

Price-fixing is punishable by up to a $1 million fine and 10 years in prison under

A)
the Uniform Electronic Transactions Act.

B)
the Real Estate Licensing Act.

C)
the Sherman Antitrust Act.

D)
the Statute of Frauds.

Answer 45

Explanation
The answer is the Sherman Antitrust Act. Price-fixing or market allocation is a violation of the Sherman Antitrust Act and a penalty can be up to a maximum $1 million fine and 10 years in prison. For corporations, the penalty may be as high as $100 million.

Question 46

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

A)
a common practice allowed
in most states.

B)
not a violation of antitrust laws.

C)
recommended practice by the National Association of REALTORS®.

D)
a violation of antitrust laws.

Answer 46

Explanation
The answer is a violation of antitrust laws. The challenge for real estate brokers and sales associates is to avoid even the impression of price-fixing. Hinting to prospective clients that there is a “going rate” for commissions or a “normal” fee implies that rates are, in fact, standardized. The licensee must make it clear to clients that the rate stated is only what that brokerage charges.

Question 47

The Counselors of Real Estate (CRE), Commercial Investment Real Estate Institute (CIREI), and Institute of Real Estate Management (IREM) are affiliated institutes of

A)
National Association of REALTORS® (NAR).

B)
American Realty Association (ARA).

C)
National Organization of REALTORS® (NOR).

D)
National Association of Real Estate Agents (NAREA).

Answer 47

Explanation
The answer is National Association of REALTORS® (NAR). NAR has the following affiliated institutes, societies, and councils: Counselors of Real Estate (CRE), Commercial Investment Real Estate Institute (CIREI), and Institute of Real Estate Management (IREM), among others.

Question 48

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

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

B)
Abstain from using text messages totally

C)
Use many acronyms and abbreviations to save money

D)
Only send text messages for contract forms

Answer 48

Explanation
The answer is use clear and concise language and follow any state laws regarding text messaging. Text messages should be clear and concise, making sure that the subject of the message isn’t lost, and avoid the use of too many text message acronyms. State law may require that all communications by real estate professionals include their name, address, license number, and (for a sales associate) the name of the employing broker.

Question 49

Terry is the personal assistant of a real estate sales associate. Terry must be paid by the broker who employs the sales associate. This means that

A)
ultimate responsibility for Terry’s conduct in the performance of work-related activities lies with the sales associate.

B)
the sales associate doesn’t make very much money.

C)
Terry is a part-time employee.

D)
Terry has a real estate license.

Answer 49

Explanation
The answer is Terry has a real estate license. Most states have very specific rules about what a licensed assistant and an unlicensed assistant may do and how they can be compensated. Usually, an unlicensed personal assistant working for a sales associate can be paid by the sales associate, but a licensed personal assistant working for a sales associate must be paid by the employing broker.

Question 50

The primary purpose of the Uniform Electronic Transactions Act (UETA) is to

A)
protect consumers against unwanted email.

B)
allow brokers to close more deals.

C)
remove barriers in electronic commerce that would otherwise prevent enforceability of contracts.

D)
facilitate the use of social media.

Answer 50

Explanation
The answer is remove barriers in electronic commerce that would otherwise prevent enforceability of contracts. The primary purpose of the Uniform Electronic Transactions Act (UETA) is to remove barriers in electronic commerce that would otherwise prevent enforceability of contracts. UETA sets forth basic rules for entering an enforceable contract using electronic means.

Question 51

Many trade organizations serve the real estate business. The largest is the

A)
National Association of REALTORS® (NAR).

B)
National Organization of REALTORS® (NOR).

C)
National Association of Real Estate Agents (NAREA).

D)
American Realty Association (ARA).

Answer 51

Explanation
The answer is National Association of REALTORS® (NAR). The National Association of REALTORS® (NAR) is the largest real estate trade organization serving the real estate industry.

Question 52

Group boycotting is illegal and occurs when

A)
two or more businesses conspire against another business or agree to withhold their patronage to reduce competition.

B)
agents refuse to provide services to a certain class of individuals.

C)
agents of one real estate organization refuse to socialize with another.

D)
a group of neighbors decide to boycott the services of a particular agent.

Answer 52

Explanation
The answer is two or more businesses conspire against another business or agree to withhold their patronage to reduce competition. Group boycotting occurs when two or more businesses conspire against another business or agree to withhold their patronage to reduce competition. Group boycotting is illegal under the antitrust laws.

Question 53

After license laws are enacted by the legislature, who is responsible for adopting administrative regulations?

A)
Licensing authority (division, Commission, etc.)

B)
A subcommittee that reports to the legislature

C)
Brokers and sales associates appointed by the governor

D)
A local association of REALTORS®

Answer 53

Explanation
The answer is licensing authority (division, Commission, etc.) Administrative regulations are written and adopted by the licensing authorities in each state. They have the force and effect of law, but they are easier to change because they do not require legislative action.

Question 54

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?

A)
$256,200

B)
$139,900

C)
$193,746

D)
$387,492

Answer 54

Explanation
The answer is $387,492. The problem can be solved using these two steps:

(1) Find the entire commission by doubling the listing broker’s half: 2 × $12,593.50 = $25,187.
(2) Find the sales price by dividing the entire commission by the brokerage rate:

$25,187 ÷ 0.065 = $387,492.

Question 55

Practical applications of the articles of the REALTORS® Code of Ethics are known as

A)
Standards of Business.

B)
Covenants of Practice.

C)
Standards of Practice.

D)
Covenants of Business.

Answer 55

Explanation
The answer is Standards of Practice. Practical applications of the articles of the REALTORS® Code of Ethics are known as Standards of Practice.

Question 56

A real estate broker was responsible for a chain of events that resulted in the sale of a client’s property. This is called

A)
pro forma.

B)
proffered offer.

C)
private offering.

D)
procuring cause.

Answer 56

Explanation
The answer is procuring cause. A broker who starts a chain of events that results in a sale and does so without abandoning the transaction, may be considered the procuring cause of sale.

Question 57

National Association of Real Estate Brokers (NAREB)

A)
is part of the National Association of REALTORS®.

B)
members are known as REALTORS®.

C)
members are known as Realtists.

D)
no longer concerns itself with equal housing opportunity.

Answer 57

Explanation
The answer is members are known as Realtists. Members of the National Association of Real Estate Brokers (NAREB) are known as Realtists.

Question 58

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

A)
put the property in MLS and offer other brokers a co-op.

B)
be the procuring cause of the sale.

C)
split the commission with any other broker that listed the property.

D)
notify all other listing brokers if they have an offer.

Answer 58

Explanation
The answer is be the procuring cause of the sale. In an open listing, the seller will only pay the broker who procures (brings) the buyer.

Question 59

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

A)
UETA.

B)
Junk Fax Prevention Act.

C)
COPPA.

D)
CAN-SPAM.

Answer 59

Explanation
The answer is UETA. The law sets forth basic rules for entering an enforceable contract using electronic means. The primary purpose of UETA is to remove barriers in electronic commerce that would otherwise prevent enforceability of contracts.

Question 60

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

A)
Cooperating broker commission

B)
Procuring cause commission

C)
Graduated commission split

D)
100% commission plan

Answer 60

Explanation
The answer is graduated commission split. A graduated commission split is based on a sales associate’s achieving specified production goals. A 100% commission plan provides for a sales associate to pay a monthly service charge to the broker so that the sales associate can keep 100% of the commissions earned.

Question 61

The real estate industry, including all licensed real estate brokers and sales associates, is subject to

A)
fair competition laws.

B)
social security taxation.

C)
antitrust laws.

D)
more regulations for smaller firms.

Answer 61

Explanation
The answer is antitrust laws. Even though individual real estate sales associates are subject to supervision by the employing real estate broker, both are subject to both federal and state antitrust laws.

Question 62

A sales associate’s contract with her broker states that she is not an employee. In the past year, less than half her income was commission, with the rest an hourly wage paid by the broker. The IRS would classify her as

A)
an employee.

B)
an independent contractor.

C)
a part-time real estate salesperson.

D)
self-employed.

Answer 62

Explanation
The answer is an employee. Because her earnings were more than half in hourly wages, the IRS would not consider her to be an independent contractor within the definition of a qualified real estate agent, but would treat her as an employee of the broker.

Question 63

The services performed by a licensed real estate professional

A)
are the same whether the licensee is representing buyer or seller.

B)
can be customized to the needs of the client or customer.

C)
are always dictated by state law.

D)
never vary because they are dictated by state law.

Answer 63

Explanation
The answer is can be customized to the needs of the client or customer. Some states require that licensees offer a minimum level of service, but most allow the client and customer to decide on the specific level of services that will be provided.

Question 64

Two real estate professionals were found guilty of conspiring with each other to allocate real estate brokerage markets. A seller suffered an estimated $90,000 loss because of their activities. If the seller brings a civil suit against the two real estate professionals, what can the seller expect to recover?

A)
Nothing, because a civil suit cannot be brought for damages resulting from antitrust activities

B)
Only $90,000—the amount of actual damages the seller suffered

C)
$270,000 plus attorney’s fees and costs

D)
Actual damages plus attorney’s fees and costs

Answer 64

Explanation
The answer is $270,000 plus attorney’s fees and costs. Under federal law, victims of such activities in restraint of trade (antitrust activities) are entitled to treble (triple) damages plus attorney’s fees and costs if the alleged perpetrators are found guilty.

Question 65

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?

A)
The agreement does not violate antitrust laws.

B)
The two sales associates have violated the Sherman Antitrust Act and are liable for treble damages.

C)
The agreement constitutes illegal price-fixing.

D)
The two sales associates are guilty of a group boycott with regard to other sales associates in their firm.

Answer 65

Explanation
The answer is the agreement does not violate antitrust laws. Because both sales associates are in the same firm, their agreement is not an intercompany agreement to allocate markets; it is merely fixing responsibility within one company and is quite proper and not subject to antitrust law.

Question 66

A recent important change to real estate brokerage practice is

A)
fax transmissions.

B)
the use of electronic signatures.

C)
digital communication in all its forms.

D)
use of personal assistants.

Answer 66

Explanation
The answer is digital communication in all its forms. The smartphone, tablet, and laptop computer have greatly enhanced the ability of real estate licensees to stay in contact with clients and customers. The use of online listings and other resources has made consumers much more active participants in the transaction.

Question 67

After license laws are enacted by the legislature, who is responsible for adopting administrative regulations?

A)
Licensing authority (division, Commission, etc.)

B)
A subcommittee that reports to the legislature

C)
A local association of REALTORS®

D)
Brokers and sales associates appointed by the governor

Answer 67

Explanation
The answer is licensing authority (division, Commission, etc.) Administrative regulations are written and adopted by the licensing authorities in each state. They have the force and effect of law, but they are easier to change because they do not require legislative action.

Question 68

What is IDK?

Answer 68

Internet Data Exchange

Policy of NAR that limit the internet distribution of listings information

Question 69

What is UETA?

Answer 69

Uniform Electronic Transaction Act

makes contracts (including signatures) and records legally enforceable, regardless of the medium in which they are created.

Question 70

What is CAN-SPAM Act?

Answer 70

Assault of Non-Solicited Pornography and Marketing

Act to set a national standard for the regulation of spam email.

Question 71

What is COPPA?

Answer 71

Children’s Online Privacy Protection Act.

Restrictions on collection of information from children younger than 13 by means of the internet, including mobile apps