Test your knowledge of the NAR Code of Ethics.
1. The Code of Ethics is based on the concept:
a. Let the buyer beware
b. Let the seller beware
c. Let the public be served
d. Let the public be dammed, how do I get paid?
2. The Code of Ethics was adopted:
a. To establish standards of conduct for the indistry
b. Only as “recommendations” for proper conduct
c. In 1930 after the stock market crash
d. Both a and c
e. Both b and c (Don’t you hate these choices)
3. The Preamble to the Code:
a. Sets out aspirational ideals that Realtors should strive to attain
b. Can be used as a basis for disciplinary action against a Realtor
c. Requires Realtors to meet the standards set forth in the Preamble
d. Was written by the first president of NAR on a restaurant napkin
4. The Code is primarily enforced through:
a. NAR
b. State associations of Realtors
c. Local associations of Realtors
d. None of the above
e. All of the above
f. Strong armed thugs
5. The 2 basic types of complaints that are handled by local associations are:
a. Ethics complaint & license law complaints
b. License law complaints & mediation complaints
c. Ethics complaints & requsts for arbitration
d. License law complaints & requests for arbitration
e. Commission complaints & consumer complaints
f. Complaints about demanding sellers and fussy buyers
6. The 3 committees or groups that are involved in the Code enforcement process are:
a. Grievance Committee, Appeals Committee, & Board of Directors
b. Professioanl Standards Committee, Arbitration Committee, & Mediation Committee
c. Professional Standards Committtee, Mediation Committee, & Board of Directors
d. Grievance Committee, Professional Standards Committee & Board of Directors
e. Dance Committee, Yearbook Committee, & Bored of Committees Committee
7. A request for arbitration is most commonly based on a dispute about:
a. A listing commission
b. A cooperative (selling) commission
c. An earnest money dispute
d. A claim for damages
e. A blogger saying mean things about a Realtor
8. A request for mandatory arbitration is based on:
a. A monetary dispute between Realtors (principals) in different firms
b. A legal claim for damages between Realtors in different firms
c. A monetary dispute between a Realtor and Realtor.com
d. A legal claim for damages between a salesperson and his/her broker
e. Anything to get the other party to offer a settlement
9. The concept of procuring cause is used to decide commission disputes in arbitration cases. Which of the following statements is true about the concept of procuring cause?
a. No predeterminmed rules of entitlement are allowed to be used by a hearing panel
b. A hearing panel should not consider the entire course of conduct in the transaction & should decide the case on that one factor
c. Whether an agent abandoned or estranged a buyer is not an important factor in determining which party will receive an award
d. Generally, a hearing panel should split the award rather than award it all to one party
e. In cases involving procuring cause, a coin toss is a tool in deciding the outcome
10. Realtors have an obligation to protect and promote the best interests of their client but also have an obligation to treat all parties: (is this not a trick question)
a. Fairly
b. Honestly
c. Fairly and honestly
d. As interlopers
e. None of the above
11. If a listing broker tells another broker, “I’ll cooperate with you”, the other broker:
a. May assume the listing broker will pay a cooperative commission
b. May not assume the listing broker will pay a cooperative commission
c. Has an arbitration claim against the broker if the listing broker fails to pay a cooperative commission
d. Has a legal claim against the listing broker for the cooperative commission if the listing broker refuses to pay a cooperative commission
e. Both a and c
f. Both a & d
g. Will go “halfees” on munchies for the Open House
12. A cooperating broker in a transaction that resulted in a sale may:
a. Claim to have “sold” the property
b. Post a “sold” sign on the property after closing (w/buyer permission)
c. Not claim to have “sold” the property but may state they “participated” or “assisted” in the transaction
d. Both a & b
13. Disciplinary action in an ethics complaint may NOT include:
a. A fine not to exceed $5000
b. A letter of reprimand
c. A requirement that the respondent attend a course of education
d. An written apology
The answers will be posted on Friday along with the author of the quiz. The quiz answers were slightly modified to try to keep readers awake. Answers here.
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