LEGAL ASPECTS ACTUAL FINALS QUESTIONS AND
ANSWERS SET A+
✔✔Common law agency is governed by: - ✔✔authority from customs originating in pre-
colonial England.
✔✔A principal delegates ongoing duties to an agent under his or her employ in a: -
✔✔general agency.
✔✔An agency relationship created by words or actions of the agent is a(n): - ✔✔implied
agency.
✔✔A broker can act as a dual agent with written consent from - ✔✔both the buyer and
seller.
✔✔An agency created by __________ occurs when a principal causes a third party to
believe that another person is acting as the principal's agent. - ✔✔estoppel
✔✔A fact that would prevent a buyer from authorizing an agent to purchase a property
had he or she known about the fact is a: - ✔✔material fact.
✔✔An agent successfully earns a commission when he or she does which of the
following? - ✔✔All of the choices apply;
Procures a ready buyer,
Procures a buyer that is willing to purchase,
Procures a buyer that is able
✔✔An agency can be terminated by: - ✔✔operation of law.
✔✔The civil rights movement in America began with the: - ✔✔Civil Rights Act of 1968.
, ✔✔Currently, the federal Fair Housing Act has seven protected classes. Which of the
following is NOT a protected class under the federal Fair Housing Act. - ✔✔Ancestry
✔✔The Fair Housing Act brings together the __________ and __________ to provide
anti discriminatory protection in housing, education, and employment. - ✔✔Civil Rights
Act of 1968 / Fair Housing Amendments Act of 1988
✔✔A prospective buyer, who is white, contacts Pam, a broker, about houses on the
market. The buyer tells Pam that he does not like Hispanics, and asks her whether
there are a lot of Hispanics living in a particular neighborhood. How should Pam answer
this question? - ✔✔Pam should tell the buyer that she is prohibited by law from
discussing the racial composition of a particular neighborhood.
✔✔In housing, which of the following federal and state laws deal with illegal
discrimination against individuals with disabilities? - ✔✔Federal Americans with
Disabilities Act
✔✔Which California law prohibits a person from being denied the right to business
products and services? - ✔✔Unruh Civil Rights Act
✔✔Which federal legislation was enacted to prohibit businesses from cooperating and
conspiring with one another for the sole purpose of controlling the pricing or competition
in their respective industries? - ✔✔Truth in Lending Act
✔✔Which of the following deals with the regulation of prospecting activities? - ✔✔All of
the choices apply;
National Do Not Call law,
Do Not Fax rules,
CAN-SPAM Act of 2003
✔✔Which act ensures that all consumers are given an equal chance to obtain credit? -
✔✔Equal Credit Opportunity Act
✔✔What was the landmark legislation that launched Truth in Lending disclosures in
1968? - ✔✔Consumer Credit Protection Act
✔✔Which California act bans the denial of a real estate loan based on protected
classes or the characteristics of a neighborhood? - ✔✔Housing Financial Discrimination
Act of 1977
✔✔Which statement is not a purpose of the Real Estate Settlement Procedures Act? -
✔✔Protect consumers by eliminating kickbacks and referral fees that unnecessarily
increase the costs of settlement services.
ANSWERS SET A+
✔✔Common law agency is governed by: - ✔✔authority from customs originating in pre-
colonial England.
✔✔A principal delegates ongoing duties to an agent under his or her employ in a: -
✔✔general agency.
✔✔An agency relationship created by words or actions of the agent is a(n): - ✔✔implied
agency.
✔✔A broker can act as a dual agent with written consent from - ✔✔both the buyer and
seller.
✔✔An agency created by __________ occurs when a principal causes a third party to
believe that another person is acting as the principal's agent. - ✔✔estoppel
✔✔A fact that would prevent a buyer from authorizing an agent to purchase a property
had he or she known about the fact is a: - ✔✔material fact.
✔✔An agent successfully earns a commission when he or she does which of the
following? - ✔✔All of the choices apply;
Procures a ready buyer,
Procures a buyer that is willing to purchase,
Procures a buyer that is able
✔✔An agency can be terminated by: - ✔✔operation of law.
✔✔The civil rights movement in America began with the: - ✔✔Civil Rights Act of 1968.
, ✔✔Currently, the federal Fair Housing Act has seven protected classes. Which of the
following is NOT a protected class under the federal Fair Housing Act. - ✔✔Ancestry
✔✔The Fair Housing Act brings together the __________ and __________ to provide
anti discriminatory protection in housing, education, and employment. - ✔✔Civil Rights
Act of 1968 / Fair Housing Amendments Act of 1988
✔✔A prospective buyer, who is white, contacts Pam, a broker, about houses on the
market. The buyer tells Pam that he does not like Hispanics, and asks her whether
there are a lot of Hispanics living in a particular neighborhood. How should Pam answer
this question? - ✔✔Pam should tell the buyer that she is prohibited by law from
discussing the racial composition of a particular neighborhood.
✔✔In housing, which of the following federal and state laws deal with illegal
discrimination against individuals with disabilities? - ✔✔Federal Americans with
Disabilities Act
✔✔Which California law prohibits a person from being denied the right to business
products and services? - ✔✔Unruh Civil Rights Act
✔✔Which federal legislation was enacted to prohibit businesses from cooperating and
conspiring with one another for the sole purpose of controlling the pricing or competition
in their respective industries? - ✔✔Truth in Lending Act
✔✔Which of the following deals with the regulation of prospecting activities? - ✔✔All of
the choices apply;
National Do Not Call law,
Do Not Fax rules,
CAN-SPAM Act of 2003
✔✔Which act ensures that all consumers are given an equal chance to obtain credit? -
✔✔Equal Credit Opportunity Act
✔✔What was the landmark legislation that launched Truth in Lending disclosures in
1968? - ✔✔Consumer Credit Protection Act
✔✔Which California act bans the denial of a real estate loan based on protected
classes or the characteristics of a neighborhood? - ✔✔Housing Financial Discrimination
Act of 1977
✔✔Which statement is not a purpose of the Real Estate Settlement Procedures Act? -
✔✔Protect consumers by eliminating kickbacks and referral fees that unnecessarily
increase the costs of settlement services.
