Professional Ethics and Conduct Flashcards

A client instructs a licensee to perform an action that is legal but conflicts with the professional's ethical guidelines. The licensee should:

Answer: Explain the ethical concern and, if unresolved, consider withdrawing from the engagement

Professionals should communicate ethical concerns to the client and may withdraw if the conflict cannot be resolved.

Which of the following is the primary purpose of a professional code of ethics?

Answer: To set minimum standards of conduct that protect the public and maintain trust in the profession

A professional code of ethics exists primarily to protect the public and uphold the integrity and trustworthiness of the profession.

A real estate professional learns that a property they are listing has a history of flooding that is not required by law to be disclosed. Ethically, they should:

Answer: Disclose the information voluntarily to potential buyers

Ethical practice often exceeds legal minimums; voluntarily disclosing material information that affects a buyer's decision is the right course.

Steering a client toward or away from certain options based on the client's protected class characteristics is known as:

Answer: Discrimination and a violation of fair practice laws

Steering clients based on protected class characteristics such as race, religion, or national origin is discriminatory and violates fair housing and anti-discrimination laws.

A licensee overhears a conversation suggesting a client plans to harm a third party. The professional should:

Answer: Take reasonable steps to warn the potential victim and notify authorities

When there is a credible threat of serious harm, the duty to warn typically overrides confidentiality obligations.

What is the ethical significance of maintaining proper documentation of client interactions and decisions?

Answer: It protects both the client and the professional and demonstrates accountability

Thorough documentation creates an accurate record of the professional relationship, supports accountability, and protects all parties in disputes.

A licensee who knowingly allows their license to lapse but continues to practice is guilty of:

Answer: Unauthorized practice of a licensed profession

Practicing without a valid, current license constitutes unauthorized practice, which is typically a criminal offense.