Deck 13: Code of Ethics in Real Estate Marketing

Question 1

The duties test is grounded in what ethicists refer to as ___ ethics.

Answer 1

deontological

Question 2

___ is a group of ethical theories asserting that the consequences of one's action should be the basis for any judgment about the rightness or wrongness of that action.

Answer 2

Consequentialism

Question 3

Many business ethicists consider the ___ to be a 'minimal test,' i.e., the least one can do to evaluate whether an action is ethical.

Answer 3

legal test

Question 4

Which of the following are responsibilities real estate agents and brokers have to other real estate agents and brokers and real estate businesses and business practices?

A) to not knowingly make false or misleading statements about another real estate professional
B) to reveal interests in real estate transactions involving property owned by the real estate professional
C) to mediate or arbitrate disputes, instead of litigating
D) to show professional courtesy at social functions organized by NAR
E) to not circumvent exclusive brokerage deals arranged by other real estate professionals

Question 5

If a real estate agent or broker wants to advertise a property to potential buyers, what does the NAR Code of Ethics require them to do?

A) be truthful In the description of their offerings
B) obtain written permission to do so from the property owner
C) print or display the advertisement prominently with the NAR crest
D) disclose the fact that they are a real estate professional
E) include pictures and detailed schematics so potential customers can make an informed decision

Question 6

Which of the following are legitimate reasons to not show a client an available property?

A) the property is located in a neighborhood primarily inhabited by people who are a different race from the client
B) the property does not meet the client's expectations
C) the client is handicapped in a way that makes them unable to climb hills or stairs
D) the property is far outside the client's price range
E) there are legal restrictions on where the client can reside

Question 7

Which of the following are responsibilities real estate agents and brokers have to the public, as per the National Association of Realtors (NAR) Code of Ethics?

A) to use clear and understandable language in written agreements
B) to offer simple legal advice when capable and recommend obtaining legal counsel when incapable
C) to not deny equal services on account of race, gender, or sexual orientation
D) to not knowingly make false or misleading statements about another real estate professional
E) to conform to a standard level of competence expected of a real estate professional

Question 8

Which of the following are responsibilities that real estate agents and brokers have to clients and customers under the National Association for Realtors (NAR)?

A) to discover latent defects on a property
B) to avoid exaggerating, misrepresenting, or concealing facts
C) to reveal their ownership or interest in applicable transactions
D) to keep a special account for monies that are left in their care
E) in the event of disputes between real estate agents or brokers associated with different firms, the disputing parties accept mediation if the board deems mediation as necessary

Question 9

The National Association for Realtors (NAR) Code of Ethics is divided into three major sections based on the common stakeholders in real estate transactions. What are these three groups of stakeholders?

A) realtors
B) clients and customers
C) minorities and women
D) lenders
E) the public

Question 10

What should a real estate agent or broker who is a member of NAR do if they are accused of an ethical violation?

A) remain silent and only offer what is asked of them for review
B) proactively offer all the documentation related to the alleged infraction and make themsleves available for inquiry
C) file suit against their accuser for defamation
D) be forthcoming and helpful, offering all information that is asked of them by the professional standards proceeding to investigate the claim
E) a real estate professional has no obligation to help or hinder the investigation and can act as she sees fit

Question 11

Consequentialism is sometimes referred to as ___ ethics.

Question 12

The ___ is refered to as 'preference utilitarianism' among philosophers and ethicists.

Question 13

___ is essentially a psychological agreement by which the people band together for their own good.

Question 14

___ in marketing encompasses balancing the legitimate demands of stakeholders, accepting accountability for marketing decisions, and integrating ethical and societal obligations into the firm's marketing activities.

Question 15

___ are groups external to the organization that influence and/or are influenced by the organization.

Question 16

Consumers can register complaints with the ___, a consumer advocacy group, if they feel they have been dealt with unfairly.

Question 17

___ is the antithesis of competition.

Question 18

The more ___ there is, the greater the likelihood that an industry will innovate and grow more efficient.

Question 19

The UN expanded the rights outlined in the ___, originally outlined by John F. Kennedy, to include the right to satisfy basic need, the right to redress, the right to consumer education, and the right to a healthful environment.

Question 20

___ morality, characterized by awareness in the vast diversity of moral systems, is most commonly found in adults.

Question 21

___ morality, characterized by obedience to rule, custom, and procedure, is most commonly found in adolescents.

Question 22

___ morality, characterized by decision-making centered around the costs and benefits to the self, is most commonly found in children.

Question 23

What action does the NAR Code of Ethics prescribe for situations in which a client asks for or requires legal counsel?

A) an agent may give simple advice in areas related to their experience
B) an agent should separate themselves from the client and their troublesome request
C) an agent should recommend that the client obtain legal counsel
D) an agent should direct the client to the local NAR office
E) an agent should dissuade the client from legal counsel unless absolutely necesasry

Question 24

What action should a member of NAR take if they want to provide a service for a client that is outside their area of competence?

A) they should engage the assistance of one who is competent in the area and fully disclose their contribution to the client
B) they should express their lack of competence to the client and ask for acceptance before proceeding
C) they should ask for advice from the local NAR office and act accordingly
D) they should do some research to see if they are able to acquire the knowledge needed to become competent before accepting or declining
E) NAR does not restrict the actions of the real estate professional in this case

Question 25

Real estate agents and brokers in NAR are not permitted to accept compensation from more than one party.

Question 26

Article 6 of the NAR Code of Ethics requires agents and brokers to disclose any benefits they will receive from products and services they recommend.

Question 27

As long as he is not participating in buying or selling, a real estate agent or broker in NAR can provide professional services without disclosing his interests.

Question 28

In selling property she owns, a real estate agent or broker in NAR must notify the purchaser or purchaser's representative about her ownership or interest in writing.

Question 29

Real estate agents and brokers in NAR must not buy or present offers from themselves, their immediate family, their firms and the firm's members, or any entity in which they have an ownership interest without making their true position known to the owner or the owner's agent.

Question 30

NAR requires real estate agents and brokers to compensate all other real estate agents and brokers whose cooperation led to a commission.

Question 31

Real estate agents and brokers who are members of NAR are required to cooperate with one another, except when doing so is not in their client's best interest.

Question 32

NAR requires real estate agents and brokers to inspect properties so they are aware of defects, and further requires them to convey this information without exaggeration or misrepresentation to those who have a vested interest.

Question 33

If during the course of a transaction a property or the area around the property undergoes a dramatic change, a real estate agent or broker in NAR is ethically obligated to notify not only his client but also all the other stakeholders involved in the transaction.

Question 34

Real estate agents and brokers can provide specialized professional services outside their field of competence, as long as this fact is fully disclosed and acccepted by their client.

Question 35

A real estate agent or broker in NAR need not disclose the fact that she is a real estate professional when soliciting for her firm through a mailing campaign.

Question 36

NAR members, as per the fifth amendment, are not obligated to cooperate with professional standards proceedings if doing so will implicate them in unethical behavior.

Question 37

Which of the following is a legitimate reason for a real estate agent or broker to deny equal service under the NAR Code of Ethics?

A) the client holds a religious belief which the agent does not
B) the client does not speak English fluently
C) the client is a family member
D) the client is disabled and requires special consideration
E) none of the above

Question 38

Article 9 of the NAR Code of Ethics states that real estate agents and brokers shall assure agreements are written in clear and understandable language. What else does Article 9 require of agents and brokers?

A) to provide each party with a copy of all relevant agreements
B) to secure legal counsel prior to a transaction in case there is a complaint
C) to have each agreement looked over by a qualified legal professional
D) to make sure verbally that each party fully understands the terms of the agreement
E) to include a statement indicating all the ways in which the agent is being compensated

Question 39

Article 8 of the NAR Code of Ethics states that real estate agents and brokers should keep a separate account in an appropriate financial institution. What should be kept in this account?

A) commisions from recent sales, which should not be spent in case a client makes a complaint
B) all monies in the agent or brokers possession, including their savings
C) money to use toward professional services such as property inspections and appraisal
D) monies coming into their possesion in trust of other people, such as escrows and trust funds
E) withheld taxes on commision

Question 40

By the NAR Code of Ethics, what must an agent or broker do if they want to receive compensation from multiple parties?

A) consent from the client
B) disclosure to all relevant parties
C) disclosure to all parties and written consent of the client
D) confirmation from the local NAR office
E) the NAR code of ethics does not require any action

Question 41

What action is prescribed by the NAR Code of Ethics if a real estate agent or broker wants to recommend a product or service that will result in their own financial compensation?

A) include their benefit within the writing of the contract
B) disclose their interest to the client
C) ensure the product or service is truly valuable to the client
D) document that the product or service is the best available and therefore that the client's interests were served
E) the NAR code of ethics does not prescribe any action

Question 42

What does Article 4 of the NAR Code of Ethics require agents and brokers to do if they want to sell their own properties?

A) appoint another agent to watch over the process to ensure they do not abuse their status to gain an advantage over the buyer
B) reveal their ownership in writing to all releveant parties
C) tell the buyer at some time before the transaction is completed
D) ensure all agreements are written in clear and understandable language
E) the NAR code of ethics prescribes no rules for agents selling their own properties

Question 43

What, according to the National Association of Realtors (NAR) Code of Ethics, what is the primary obligation of real estate agents and brokers?

A) to protect and promote the interests of their clients
B) to be willing to present evidence and appear to answer questions when charged with unethical behavior
C) to not knowingly break the law
D) to be honest and truthful, not only to their client, but to all stakeholders involved in a real estate transaction
E) to ensure that all agreements are written in understandable language

Question 44

Article 16 of the NAR Code of Ethics states that real estate agents and brokers shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other agents/brokers have with clients.

Question 45

Misrepresentation of competitors is only unethical if the misrepresentation is done intentionally.

Question 46

Real estate agents associated with NAR are pledged to protect and promote the interests of their client alone and have no ethical obligations to other parties.