Unfair Trade Practices Quiz
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Questions and Answers

Which of the following actions constitutes a violation related to handling trust funds?

  • Using an escrow agent with written consent from all parties
  • Maintaining separate accounts for personal and trust funds
  • Turning over trust funds promptly to the broker
  • Depositing trust funds in a personal account (correct)

    • What is a requirement for maintaining trust funds according to proper practices?

  • Using a bank account with minimal interest rates
  • Keeping all trust funds in a single account
  • Depositing trust funds in a non-interest bearing account
  • Having a federally insured account at a financial institution (correct)

    • Which of the following must be disclosed in writing to a principal during a real estate transaction?

  • Getting reimbursed for expenses made on the principal's behalf (correct)
  • Receiving referral fees from unrelated third parties
  • Paying for advertising costs related to the property
  • Accepting any gifts from the principal

    • What constitutes deceptive advertising in real estate?

    <p>Intentionally using misleading or inaccurate information</p> Signup and view all the answers

    Which practice is NOT allowed regarding the duration of real estate signs?

    <p>Leaving a sign up for over 10 days post-listing expiration</p> Signup and view all the answers

    What is a required recordkeeping practice for real estate transactions?

    <p>Retaining transactional records for at least three years</p> Signup and view all the answers

    Which situation would likely be considered a violation related to trust funds?

    <p>Failing to obtain written agreement about interest disposition</p> Signup and view all the answers

    What is an illegal practice when referring other services within a transaction?

    <p>Receiving a referral fee from another broker</p> Signup and view all the answers

    What does the Georgia Fair Business Practices Act specifically prohibit?

    <p>Misleading or fraudulent advertising</p> Signup and view all the answers

    Which of the following is true regarding the Georgia Uniform Deceptive Trade Practices Act (UDTPA)?

    <p>It addresses price fixing and does not require a consumer transaction</p> Signup and view all the answers

    Under the Georgia Fair Business Practices Act, what must occur for deceptive advertising to be prosecuted?

    <p>The deceptive advertisement must affect the entire public</p> Signup and view all the answers

    What is a potential penalty for violations of the Georgia Uniform Deceptive Trade Practices Act?

    <p>Triple damages, fines, or injunctions</p> Signup and view all the answers

    What are licensees prohibited from doing regarding housing offers based on federally protected classes?

    <p>Indicating lack of accessibility when it is actually accessible</p> Signup and view all the answers

    Which practice would be considered an unfair advertising method under the Georgia Fair Business Practices Act?

    <p>Creating misleading claims about product origins</p> Signup and view all the answers

    What type of transactions does the Georgia Fair Business Practices Act apply to?

    <p>Consumer transactions in domestic settings</p> Signup and view all the answers

    Which action is explicitly allowed under the Fair Housing related laws?

    <p>Selling properties without consideration of gender</p> Signup and view all the answers

    Study Notes

    Unfair Trade Practices

    • Utilize deceptive, fraudulent, or unethical means for business gain.
    • Protect consumers from unlawful actions of licensees.
    • Governed by Georgia’s Fair Business Practices Act, which prohibits unfair or deceptive acts mainly in advertising.
    • Applicable to domestic consumer transactions, not business-to-business.
    • Covers misleading advertising across all media platforms.
    • Requires deceptive advertising to impact the public to warrant prosecution.
    • Involves established transactions for prosecution under the act.

    Uniform Deceptive Trade Practices Act (UDTPA)

    • Addresses issues like price fixing that impair free trade competition.
    • Violations can occur without any consumer transaction taking place.
    • Allows consumers, brokers, or the state to sue for UDTPA violations.
    • Potential penalties include triple damages, fines, and injunctions.

    Georgia Code §43-40-25

    • Governs unfair trade practices specifically within the real estate sector.
    • Seven federally protected classes: race, color, religion, sex, disability, familial status, and national origin.
    • Prohibitions include refusal to sell or rent when a bona fide offer exists.
    • Forbidden discriminatory practices regarding sales or rentals' terms, conditions, or privileges.
    • Restrictions on advertising indicating preferences or discrimination.
    • Must not misrepresent property accessibility.
    • Ban on blockbusting practices to manipulate real estate listings based on demographics.
    • Improper handling of trust funds is prohibited.
    • Licensees must timely remit trust funds to the responsible broker.
    • Commingling of personal and trust funds is against the law.
    • Trust funds must be held in a separate, federally insured account unless otherwise agreed.
    • Written agreements needed for disposition of earned interest in escrow accounts.
    • Disclosure is required when receiving any value on behalf of the principal.
    • Must disclose if receiving compensation for referrals of products or services.
    • Payment to another broker for referrals in transactions must also be disclosed.
    • Intentional use of deceptive, misleading, or inaccurate information is prohibited.
    • License status must be openly disclosed in advertisements.
    • Sign placement on properties without owner consent is illegal, as is keeping signs up post-listing for over 10 days.
    • Discriminatory advertisements are strictly forbidden.
    • Transactional and trust account records must be retained for a minimum of three years.
    • Must provide records for inspection by GREC upon reasonable request.
    • Falsification of real estate transaction documents is illegal.

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    Description

    Test your knowledge on unfair trade practices and explore the provisions of Georgia's Fair Business Practices Act. This quiz covers key concepts relating to deceptive, fraudulent, or unethical business practices that protect consumers. Understand how these laws impact domestic transactions.

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