Podcast
Questions and Answers
Match the following types of laws with their descriptions:
Match the following types of laws with their descriptions:
Statutory laws = Laws enacted by a legislative body Administrative regulations = Rules adopted by administrative agencies Ordinances = Laws enacted by a county or city Antitrust laws = Laws intended to encourage competition between businesses
Match the antitrust violations with their definitions:
Match the antitrust violations with their definitions:
Price fixing = Cooperative setting of prices by competing firms Tie-in arrangement = Requirement to buy one product to purchase another Market allocation = Dividing markets among competitors Conspiracy = Agreement between businesses to restrain trade
Match the levels of laws with their scope:
Match the levels of laws with their scope:
Federal laws = Apply to everyone in the country State laws = Apply to everyone in a particular state Local laws = Apply to a particular city or county Administrative regulations = Apply to specific administrative procedures
Match the antitrust law consequences with their penalties:
Match the antitrust law consequences with their penalties:
Match the following aspects related to laws:
Match the following aspects related to laws:
Match the following terms with their definitions:
Match the following terms with their definitions:
Match the following aspects of disability to their descriptions:
Match the following aspects of disability to their descriptions:
Match the following fair housing scenarios to their violations:
Match the following fair housing scenarios to their violations:
Match the following complaints to their remedies:
Match the following complaints to their remedies:
Match the following roles under the Fair Housing Act with their descriptions:
Match the following roles under the Fair Housing Act with their descriptions:
Flashcards
Disability
Disability
Any physical or mental impairment that substantially limits one or more of an individual's major life activities.
Steering
Steering
Steering prospective buyers or tenants toward or away from specific neighborhoods based on their race or other protected class, to maintain or change the character of those neighborhoods.
Familial Status
Familial Status
A protected class defined as having a child under 18 living with you. This includes parents, legal guardians, pregnant women, and those in the process of gaining custody of a child.
Tester
Tester
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Fair Housing Act Enforcement
Fair Housing Act Enforcement
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Statutory Laws
Statutory Laws
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Administrative Regulations
Administrative Regulations
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Antitrust Conspiracy
Antitrust Conspiracy
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Price Fixing
Price Fixing
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Tie-in Arrangement
Tie-in Arrangement
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Study Notes
Complying with Federal, State, and Local Laws
- Students should be able to explain prohibited activities under the Sherman Act
- They should also be able to discuss disclosure laws that apply to managers and landlords
- Students need to identify the manager's responsibilities under the Fair Credit Reporting Act when screening tenants
- A list of prohibited acts under the Fair Housing Act is necessary
- Familial status and the exemption for housing for older persons must be discussed
- Reasonable accommodations for persons with disabilities in housing and employment are important
- The minimum wage and overtime rules of the Fair Labor Standards Act should be stated
- The two-prong employment test for coverage under the ADA should be explained
- Various land use laws affecting tenant property use need to be understood
Suggested Lesson Plan
- Students should review the previous chapter on managing industrial property using exercise 14.1
- Chapter 14, 'Complying with Federal, State, and Local Laws', and its course objectives should be reviewed
Federal, State, and Local Laws
- Federal laws apply to everyone in the country, state laws to residents of each state, and local laws only to those in a specific city/county/local jurisdiction
- Laws can be statutory laws or administrative regulations.
- Statutory laws are laws enacted by legislative bodies (Congress/state legislature). Ordinances are county or city laws
- Administrative regulations are rules adopted by federal, state, or local agencies
Antitrust Laws
- Federal and state laws intended to encourage competition
- The Sherman Act: prohibits any conspiracy or agreement unreasonably restraining trade.
- Conspiracy: occurs when two or more companies engage in a scheme to restrain trade.
- Antitrust violations can result in fines (up to $1 million for a corporation, and up to $100 million for a corporation; up to 10 years in prison for individuals)
- These laws prohibit three types of activity:
- Price Fixing: Cooperative setting of prices
- Tie-In Arrangements: A buyer must purchase one product or service to get another
- Market Allocation: competing businesses pre-agree not to sell in certain regions, to certain customers, or sell particular products/services
Disclosure Laws
- Material Facts: Prospective renters need to be informed of any material facts that could influence their decision to rent
- Latent Defects: Hidden defects not visible on a normal inspection
- Megan's Law: requires states to register sex offenders, with various rules and regulations in each state, and disclosure is legally required
- Lead-Based Paint Disclosures: for houses built before 1978, landlords must disclose any lead-based paint issues to tenants
- Laws Governing Disclosure of Other Issues: additional disclosures may be required depending on state law (prior flooding, mold, pest/environmental quality issues)
Laws Affecting Tenant Screening
- Fair Credit Reporting Act (FCRA)
- Intended to improve the accuracy and protect the privacy of information collected by consumer reporting agencies
- Managers must get consent before conducting a credit check; this is usually outlined in the rental application
- Managers must disclose they'll inquire employment, residence, and criminal history during this process
- State Laws Regarding Tenant Screening and other issues
Antidiscrimination Laws
- Civil Rights Act (1866): Prohibits discrimination based on race or color in real estate transactions, including leasing.
- Civil Rights Act (1964): Prohibits discrimination based on race, color, religion, national origin, or sex in many federal assistance programs (has limited effect on rental properties).
- Civil Rights Act (1968): Includes the Fair Housing Act.
Fair Housing Act
- Prohibits discrimination in advertising, lending, real estate brokerage, and other housing-related services
- Prevents discriminatory practices in rental and/or sale of residential properties
- Discourages the practice of blockbusting (inducing homeowners to sell by predicting changes in neighborhood demographics) and steering (targeting someone based on their race, culture, religion, or origin into particular areas).
- Prohibits discrimination based on race, color, national origin, religion, familial status, and disability.
Americans with Disabilities Act (ADA)
- Prohibits discrimination in employment when an otherwise-qualified person has an impairment
- Employers are required to make "reasonable accommodations" for qualified people with disabilities in the work environment.
- The two-prong test for qualification is: the person is qualified to perform the job functions, even if with accommodations
- Individuals must meet both of these criteria to be protected under the ADA (reasonable accommodations won't be required if they constitute an undue hardship for the employer).
Federal Employment Laws
- Fair Labor Standards Act (FLSA) sets minimum wage, overtime, and record-keeping requirements
- Occupational Safety and Health Act (OSHA) is in place to prevent injuries and illnesses in the workplace, with record-keeping requirements
- Americans with Disabilities Act (ADA) prohibits discrimination in employment
- Family and Medical Leave Act (FMLA) provides a 12-week unpaid, job-protected leave for certain employees.
Land Use Laws
- Zoning ordinances dictate land use in cities and counties. Examples include: buffer zones (e.g., a park separating residential from commercial uses); overlay zoning, where differing zones intersect/overlap; and variances and non-conforming uses.
- Building codes set standards for property construction
- Codes for common interest developments govern complex properties, governing operations, record keeping, fund use and assessments.
Environmental Laws
- Numerous laws addressing environmental concerns exist, including: National Environmental Policy Act (NEPA) requiring environmental impact assessments; Endangered Species Act (ESA) prohibiting actions harmful to endangered plants and animals; and Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) governing waste disposal, recycling, and energy conservation.
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