Professional Ethics and Conduct Flashcards

Under professional ethics standards, dual agency occurs when:

Answer: A single professional represents both the buyer and seller in the same transaction

Dual agency arises when one licensee represents opposing parties, creating a potential conflict of interest that must be disclosed.

A professional receives confidential client information during an engagement. After the engagement ends, that information:

Answer: Remains confidential unless disclosure is required by law

Confidentiality obligations survive the end of a professional engagement unless law mandates disclosure.

Which of the following is an example of misrepresentation in a licensed profession?

Answer: Deliberately omitting a known material defect from a disclosure form

Deliberately omitting known material defects from disclosures constitutes intentional misrepresentation.

A licensed professional is approached to provide expert testimony in a lawsuit involving a former client. They should:

Answer: Disclose any conflict of interest and consult their attorney before agreeing

Professionals must evaluate conflicts of interest and potential confidentiality issues before agreeing to serve as expert witnesses.

The ethical concept of 'informed consent' requires that a client:

Answer: Receive complete information about risks, costs, and alternatives before agreeing to a service

Informed consent means clients must understand all material information before agreeing to a professional's services or recommendations.

A professional is offered a referral fee by another service provider for sending clients their way. Under most licensing ethics codes, this is:

Answer: Permissible only if disclosed to the client

Most licensing codes allow referral fees only when fully disclosed to the client so they can assess whether the referral is in their best interest.

When a licensed professional suspects that a client is engaging in illegal activity, the most appropriate first step is to:

Answer: Consult legal counsel to understand reporting obligations before acting

Consulting legal counsel first helps the professional understand mandatory reporting obligations and how to act without violating other duties.