CMCA Ethics and Professional Conduct 2 — Questions and Answers
Question 1: A community manager discovers that a board member is steering maintenance contracts to a family member's company without disclosure. What is the manager's BEST course of action?
- Approve the contract since the board authorized it
- Document the conflict and advise the board member to recuse and disclose per governing documents (Correct answer)
- Terminate the contract immediately without board input
- Ignore it as board members are responsible for their own conduct
Correct answer: Document the conflict and advise the board member to recuse and disclose per governing documents
The manager must document the conflict and advise the board member to disclose the relationship and recuse from the vote, consistent with conflict-of-interest obligations under CAMICB ethics standards.
Question 2: Under the CAMICB Code of Ethics, how should a CMCA designee handle a situation where following a board's instruction would violate state law?
- Follow the board's instruction since the board is the employer
- Refuse to carry out the instruction and advise the board of the legal issue (Correct answer)
- Carry out the instruction and report it anonymously later
- Resign immediately without explanation
Correct answer: Refuse to carry out the instruction and advise the board of the legal issue
A CMCA must refuse directives that violate applicable law and inform the board of the legal conflict, as professional ethics require compliance with law above client directives.
Question 3: A manager receives a gift valued at $200 from a vendor seeking a service contract. What is the most ethically appropriate response?
- Accept it as a personal courtesy unrelated to business
- Disclose the gift to the board and return or donate it per policy (Correct answer)
- Accept it and recuse only if the contract comes to a vote
- Report it to CAMICB but keep the gift
Correct answer: Disclose the gift to the board and return or donate it per policy
Accepting gifts from vendors creates a conflict of interest; the ethical response is to disclose the gift to the board and follow the community's gift policy, which typically requires returning it.
Question 4: Which principle best describes the CMCA ethical obligation regarding confidentiality of association records?
- All records must be shared publicly upon any resident request
- Confidential information should be protected and disclosed only as permitted by law or governing documents (Correct answer)
- Financial records can be shared with vendors to solicit competitive bids without restriction
- Confidentiality ends when a manager changes employers
Correct answer: Confidential information should be protected and disclosed only as permitted by law or governing documents
A CMCA must protect confidential association information and disclose it only as authorized by governing documents, applicable law, or proper authority.
Question 5: A board instructs the manager to selectively enforce a rule against only one homeowner who has complained about the board. What ethical issue does this raise?
- None, since rule enforcement is a board prerogative
- Selective enforcement, which violates the duty to treat all owners fairly and consistently (Correct answer)
- A fiduciary issue only if the owner sues
- A disclosure issue requiring notice to all residents
Correct answer: Selective enforcement, which violates the duty to treat all owners fairly and consistently
Selective enforcement based on retaliation violates the CMCA's ethical duty of fairness and can expose the association to legal liability for discriminatory or retaliatory treatment.
Question 6: How should a CMCA manager respond if asked by the board to misrepresent the association's financial condition in a newsletter to avoid owner concern?
- Comply if the board votes unanimously
- Decline and explain that accurately representing financial information is an ethical obligation (Correct answer)
- Provide a vague statement that is technically true but misleading
- Request legal counsel approval before deciding
Correct answer: Decline and explain that accurately representing financial information is an ethical obligation
The CMCA Code of Ethics prohibits misrepresentation; the manager must decline and explain the obligation to communicate financial information honestly.
Question 7: A CMCA designee is offered a side consulting arrangement by a homeowner in the community they manage. What is the primary ethical concern?
- Tax implications of additional income
- Dual loyalty conflict of interest that compromises the manager's duty to the association (Correct answer)
- Whether the homeowner's dues are current
- The scope of the consulting work
Correct answer: Dual loyalty conflict of interest that compromises the manager's duty to the association
Accepting personal compensation from an individual homeowner creates a conflict of interest that undermines the manager's undivided loyalty to the association as a whole.
CMCA Ethics and Professional Conduct 2
A community manager discovers that a board member is steering maintenance contracts to a family member's company without disclosure.
What is the manager's BEST course of action?