Legal & Regulatory Compliance Flashcards

A manager is asked by a board member to ignore a clear provision of the bylaws regarding quorum. The manager should:

Answer: Follow the bylaws and advise the board of the legal risk, consulting counsel if needed

Managers must adhere to governing documents and advise the board rather than act outside them.

Which of the following is generally considered a protected class under the Fair Housing Act?

Answer: Religion

Race, color, religion, sex, national origin, familial status, and disability are the federal protected classes.

An association's fidelity (crime) insurance primarily protects against:

Answer: Theft or dishonesty by people handling association funds

Fidelity coverage protects association funds from employee, volunteer, or manager dishonesty.

When may a manager generally disclose a specific owner's delinquency status to other owners?

Answer: Only as permitted by the governing documents and applicable privacy and collection laws

Public shaming can violate debt collection and privacy laws, so disclosure should be limited to what law and documents permit.

The statute of limitations is relevant to a manager's collection process because it:

Answer: Limits the time within which the association may bring certain legal actions to collect

Claims for unpaid assessments must be filed within the applicable statutory period or they may be barred.

If a state statute conflicts with a provision in the association's bylaws, generally:

Answer: The mandatory state statute prevails

Mandatory statutes override conflicting governing document provisions.

Which practice best reduces the association's risk when hiring a vendor for major services?

Answer: Written contract reviewed for scope, indemnification, and certificate of insurance naming the association as additional insured

Written contracts with insurance and indemnity terms protect the association from liability.