CMCA CMCA - Certified Manager of Community Associations Governance and Legal Issues Questions and Answers 3

Question 1

An executive session of a board meeting is appropriate for discussing:

Accepted Answer

Pending litigation, individual homeowner hearings, and employee personnel matters

Answer

Routine maintenance contracts and budget approvals

Answer

The community newsletter and upcoming social events

Answer

Capital improvement project bids

Question 2

The business judgment rule protects board members from personal liability when they:

Accepted Answer

Make decisions in good faith, on an informed basis, and in what they honestly believe is the association's best interest

Answer

Ignore the CC&Rs in favor of their personal preferences

Answer

Approve self-dealing transactions without disclosure

Answer

Vote to waive the association's insurance coverage

Question 3

A homeowner requests access to the association's financial records under state law. The manager should:

Accepted Answer

Comply with the request in accordance with state statute and governing documents, providing access to non-exempt records

Answer

Deny all requests to protect financial privacy

Answer

Charge a $500 inspection fee regardless of what the documents show

Answer

Redirect all requests to the association attorney without any response

Question 4

What is the primary legal purpose of recording the association's CC&Rs with the county recorder?

Accepted Answer

To provide constructive notice to all future property owners that the restrictions exist and run with the land

Answer

To obtain a tax exemption for the association

Answer

To create an annual filing requirement with the state

Answer

To establish the association's nonprofit status

Question 5

An association's rules and regulations differ from its CC&Rs primarily in that rules and regulations:

Accepted Answer

Can typically be adopted and amended by the board alone without a member vote, within the authority granted by the CC&Rs

Answer

Are recorded with the county and cannot be amended without a member vote

Answer

Override the CC&Rs if they are more restrictive

Answer

Are set by state statute and apply uniformly to all associations

Question 6

A proximate cause in a premises liability case against an association means:

Accepted Answer

The association's negligent action or inaction directly caused the plaintiff's injury

Answer

The association provided adequate notice of the hazard

Answer

The homeowner signed a liability waiver

Answer

The hazard was covered by the association's insurance