Deck 12: Ethics in Real Estate Marketing

Question 1

Two real estate professionals are engaged in a dispute over compensation for a shared transaction. The National Association of Realtors (NAR) code of ethics article 17 requires members to mediate or submit to ___ rather than rely on ligation.

Answer 1

arbitration

Question 2

Duties to other ___ are covered in articles 15-17 of the National Association of Realtors (NAR) code of ethics.

Answer 2

realtors

Question 3

Duties to the ___ are covered in articles 10-14 of the National Association of Realtors (NAR) code of ethics.

Answer 3

public

Question 4

Duties to ___ are covered in articles 1-9 of the National Association of Realtors (NAR) code of ethics.

Question 5

Which of the following are rights included in the original formulation of the Consumer Bill of Rights?

A) the right to be informed
B) the right to be heard
C) the right to safety
D) the right to choose
E) the right to privacy

Question 6

Which type of ethical test is grounded in deontological ethics?

A) the consequences test
B) the stakeholders test
C) the social contract test
D) the moral reasoning test
E) the duties test

Question 7

Which of the following statements is the best characterization of the stakeholder test?

A) ethical conduct is determined by how an action meets the needs and demands of a firm's various stakeholders
B) ethical conduct is determined by the demands of important stakeholders
C) ethical conduct is determined by ideas about morality
D) ethical conduct is determined by the codes of conduct of stakeholder organizations
E) ethical conduct is determined by a decision-maker's opinion of the stakeholders

Question 8

In what ways does the Consumer Product Safety Commission (CPSC) help ensure product safety?

A) establish performance standards
B) require sufficient product testing
C) oversee and approve warning labels
D) all of the above
E) none of the above

Question 9

How can Kohlberg's theory of moral development be used for moral reasoning to determine whether an action is ethical?

A) a person can emulate higher stage moral reasoning
B) a person who knows their moral development can consciously make ethical judgments at their own stage
C) it provides a way to find morally depraved individuals who should act as examples of what should not be done
D) it provides a way to find morally gifted individuals who can be tasked with decision-making
E) the theory is insufficient by itself, and must guided by absolute virtues

Question 10

How would you expect to hear a person who has reached conventional development described?

A) petulant
B) egocentric
C) by the books
D) empathic and understanding
E) considerate

Question 11

A real estate agent is asked by a prospective buyer how many offers there are for a property. In order to increase their client's potential earnings, the real estate agent tells the prospective buyer there are more offers than there are in reality. The real estate agent in this example has violated ___ of the National Association of Realtors (NAR) code of ethics.

Question 12

___ of the National Association of Realtors (NAR) code of ethics prohibits agents from buying or presenting offers to themselves or immediate family members without informing all relevant parties of their interest.

Question 13

A real estate professional is producing promotional material for his firm and, in doing so, rounds the percentage of his firm's market share from fifteen percent to twenty percent. This action is a violation of ___ the National Assocation of Realtors (NAR) code of ethics.

Question 14

A real estate professional is the subject of a complaint. On advice of his attorney, the real estate professional refuses a request by the chairperson of the grievance committeee to furnish documents to evaluate the complaint. In doing so, the real estate professional has violated ___ of the National Association of Realtors (NAR) code of ethics.

Question 15

A real estate agent displays a sign for sale in a client's yard with a telephone number to call for contact. Nowhere on the sign does the agent indicate that this is a solicitation from a real estate professional. In this case, the real estate agent has violated ___ of the NAR code of ethics, which requires real estate professionals to ensure their status is known in all advertisements.

Question 16

___ of the National Association of Realtors (NAR) code of ethics requires real estate agents and brokers to provide their clients services that conform to the standards of practice and competence that are reasonably expected in the specific real estate disciplines in which they engage.

Question 17

A real estate professional is ethically obligated to not deny professional services on the basis of race, color, religion, sex, familial status, ethnicity, or sexual orientation as per ___ of the National Association of Realtors (NAR) code of ethics.

Question 18

A real estate agent discovers a property that suits their client's needs, but it is in need of repairs. After discussing this with the seller, the real estate agent gets the seller to verbally agree to fix the problems and the two shake on it. The real estate agent has violated ___ of the National Association of Realtors (NAR) code of ethics, which requires all agreements to be written out in understandable language and given to all parties in a transaction.

Question 19

A real estate professional is entrusted with a sum of money as a deposit. They are unable to access their professional account because of weather conditions so for a time they decide to deposit the money in a personal account at another bank. In doing so, the real estate professional has violated ___ of the National Association of Realtors (NAR) code of ethics.

Question 20

According to ___ of the National Association of Realtors (NAR) code of ethics, a real estate professional may not accept compensation from more than one party without notifying all parties and informed consent from the professional's client.

Question 21

A certain real estate professional is responsible for the management of a property for another party. The real estate professional purchases janitorial supplies for the property at wholesale value but bills the client at market value. This real estate professional has violated ___ of the National Association of Realtors (NAR) code of ethics.

Question 22

What name is given to the moral developmental stage in which a person is primarily focused on external consequences?

A) law and order
B) obedience and punishment
C) social contract
D) social norms
E) self-interest

Question 23

What age group is associated with conventional development?

A) children
B) adults
C) newborns
D) adolescents
E) elderly

Question 24

The moral reasoning test is based on Kohlberg's theory of moral development. What are Kohlberg's three levels of development?

A) reward seeking, rule abiding, and contextually thinking
B) self-interested, conventional, and socially aware
C) pre-formative, formative, and post-formative
D) obedient, disobedient, and respectful
E) pre-conventional, conventional, and post-conventional

Question 25

The presence of multiple products on the market is by itself a sufficient indicator of healthy competition.

Question 26

Dumping-the practice of selling a product below cost to win customers over from competitors-is a hallmark of healthy capitalism.

Question 27

The right to be informed is essential to ethical capitalism because capitalism requires consumers to vote with their wallets, deciding which companies live and die.

Question 28

Consumers have the right to be informed and educated about the quality of the products offered by company. Quality, in this, does not only refer to the benefits and monetary cost of a product, but also other costs, such as cost of consumption, the negative side effects related to consumption, and the cost of assembly and disposal.

Question 29

The right to privacy was added to the Consumer Bill of Rights when the U.N. updated it, after the initial four rights were detailed in a John F. Kennedy speech.

Question 30

A person at Stage 2 moral development in Kholberg's hierarchy (self-interest) never shows respect for the needs of others.

Question 31

When people join a professional organization, they are entering a kind of social contract. They agree to abide by the organization's rules in return from reaping the benefits of association.

Question 32

To employ the social contract test, a decision-maker attempts to understand the customs and values of a target market and make moral decisions consistent with these customs and values.

Question 33

Unlawful or taboo actions may be considered ethical by a consequentialist if the benefits gained by the action outweigh the damage done.

Question 34

The social justice test suggests that a decision-maker shoulder consider how groups have been treated in the past and use the degree of prejudice that was historically leveled against them to modulate their conduct. That is, when dealing with a minority buyer, an agent should assist the buyer above and beyond what they would do for a person from a historically dominant group.

Question 35

Much of corporate social responsibility is based on stakeholder ethics.

Question 36

In order to apply the social contract test, it is important to know which community values should be applied. What are some ways of approaching "community" that are useful in real estate marketing?

A) geographic location
B) marketing demographic
C) personal awareness
D) all of the above
E) none of the above

Question 37

The social contract test is based on the works of which philosopher?

A) Jean-Jacques Rousseau
B) Thomas Aquinas
C) Jeremy Bentham
D) Thomas Hobbes
E) John Rawls

Question 38

How is the utilitarian test different from the basic consequence test?

A) it considers the practical requirements for the action and the ability of stakeholders to act as needed
B) it rejects acting ethically toward unethical actors to dissuade future unethical behavior
C) it considers the outcomes of many actions instead of one and does a cost-benefit comparison to select the best
D) it adds greater weight to the benefits an action has to self-interest
E) there is no difference

Question 39

When presented with a decision that requires action, how would a consequentialist decide whether a potential action is ethical?

A) reflect on the views society has for potential actions and choose the one that is least divergent
B) consider the outcome of the action and compare the costs and benefits
C) consult his professional organization's code of ethics and act accordingly
D) evaluate potential actions against his own understanding of morality
E) refer to the law to make sure what he wants to do is not illegal

Question 40

What type of ethical system is consequentialism?

A) deontological ethics
B) teleological ethics
C) ethics of care
D) virtue ethics
E) pragmatic ethics

Question 41

Who is widely credited with creating the foundation of consequentialist ethics?

A) Jean-Jacques Rousseau
B) Thomas Aquinas
C) Jeremy Bentham
D) Thomas Hobbes
E) John Rawls

Question 42

The central tenet of deontological ethics asserts that morality of an action can be judged based on the action's net benefit to all relevant stakeholders.

Question 43

Real estate agents are prone to embellishment because they are generally paid entirely by commission-this means their livelihood is directly dependent on making their sale.

Question 44

A marketing professional has no ethical obligation to make sure structures the firm builds are physically safe because that is the responsibility of developers, architects, and engineers.

Question 45

Jeremy Bentham argued that ethical decisions were made by considering consequences with respect to one's own interests and fears.