Governance and Legal Issues Flashcards

An owner installs a satellite dish on the roof without approval. The FCC's OTARD rule (Over-the-Air Reception Devices) most likely:

Answer: Protects the owner's right to install a small dish in their exclusive-use area, limiting the association's ability to prohibit it

The FCC's OTARD rule restricts HOA rules that impair installation of antennas/dishes under one meter in an owner's exclusive-use area, such as a balcony or patio.

In a community association election, a 'cumulative voting' system allows members to:

Answer: Pool all their votes and cast them for one candidate

Cumulative voting lets each owner multiply their votes by the number of open seats and allocate all votes to a single candidate, giving minority factions more electoral power.

A board passes a resolution at a meeting where a quorum was present, but the minutes were never approved. The resolution is:

Answer: Valid and effective because the action was properly taken at a quorate meeting

A board action validly taken at a quorate meeting is effective immediately; minutes are a record of what occurred, not a condition of the action's validity.

The doctrine of 'promissory estoppel' could bind an association when:

Answer: A manager makes an unauthorized promise that an owner detrimentally relies upon

Promissory estoppel can hold a party liable for an unauthorized promise if the other party reasonably relied on it to their detriment, even without a formal contract.

Regarding electronic voting (e-voting) in community associations, the general rule is:

Answer: E-voting is only valid if explicitly authorized by the association's governing documents and/or state law

Electronic voting is permissible only where state law and/or the governing documents specifically authorize it; otherwise, traditional ballot methods are required.

A 'statute of limitations' is relevant to community association governance because:

Answer: It sets the time period within which the association or an owner must file a legal claim

Statutes of limitations establish deadlines for filing lawsuits; missing these deadlines can permanently bar the association or a member from pursuing a legal claim.

Which of the following best describes an association's 'fiduciary duty' owed by board members to the membership?

Answer: A duty of care and loyalty requiring board members to act in the best interest of the association as a whole

Fiduciary duty requires board members to act loyally and with reasonable care for the benefit of the association and its members, placing community interests above personal interests.