Ethics and Professional Conduct Flashcards

A SAMS surveyor is hired for a pre-purchase survey. The seller's broker, who frequently recommends the surveyor for jobs, offers the surveyor a 'bonus' if the survey report is favorable and the sale is completed. What is the surveyor's most ethical course of action?

Answer: Immediately refuse the bonus, inform the client of the offer, and conduct the survey with complete objectivity.

Accepting any form of compensation contingent on the outcome of a survey or sale creates a severe conflict of interest. The SAMS Code of Ethics requires surveyors to maintain independence, integrity, and objectivity. The surveyor's primary duty is to the client. The only ethical action is to refuse the bonus, ensure the client is aware of the situation to maintain transparency, and then proceed with an unbiased and objective survey.

A surveyor is commissioned to perform an insurance survey on a complex, foreign-built superyacht with systems (e.g., advanced hybrid propulsion) that are beyond their technical expertise. According to the SAMS Code of Ethics, what is the most appropriate action for the surveyor to take?

Answer: Decline the assignment, citing a lack of the specific competence required to perform the survey professionally.

The SAMS Code of Ethics explicitly states that a surveyor shall "Accept only assignments that can be completed with competence and professionalism." Attempting a survey on a vessel with systems beyond one's expertise is unprofessional and unethical. While involving a specialist is a possibility, the primary and most ethical first step, if the core assignment is beyond one's competence, is to decline it. This upholds the integrity of the profession and protects the client.

During a pre-purchase survey, a surveyor discovers a significant, well-hidden defect that the seller and broker were likely aware of but did not disclose. After delivering the confidential report to the buyer (the client), the surveyor is contacted by a different potential buyer for the same boat a month later. How should the surveyor respond?

Answer: Advise the new client that a previous survey was conducted but that a new, independent survey must be performed, without revealing prior findings.

A survey report is a confidential document belonging solely to the client who commissioned it. The surveyor has a strict ethical duty to "Respect the confidential nature of the marine surveying assignment." Sharing the report or its specific findings with another party is a breach of that confidentiality. The correct procedure is to inform the new prospective client that a new survey is required, treating it as a completely separate and confidential assignment.

Which of the following advertising statements would be considered a violation of the SAMS Code of Ethics regarding professional conduct?

Answer: "Voted #1 Marine Surveyor - Guaranteed to find every flaw or your money back!"

The SAMS Code of Ethics requires members to "Advertise only in a dignified manner avoiding misleading statements." The statement "Guaranteed to find every flaw" is an unrealistic and misleading claim that no surveyor can ethically make. A survey is a snapshot in time of accessible components. Such a guarantee creates false expectations and is unprofessional. The other options are factual statements about qualifications, experience, and services offered, which are acceptable.

A surveyor is asked by a client to appraise a vessel at a value significantly higher than its fair market value to help the client secure a larger bank loan. What is the surveyor's ethical obligation?

Answer: Perform the appraisal based on objective findings and professional judgment, regardless of the client's request.

A surveyor's core ethical duty is to maintain independence, integrity, and objectivity. The SAMS Code of Ethics requires a surveyor to "Endeavor to present facts and opinions without prejudice" and "Avoid suppressing, over-emphasizing or manipulating facts." Intentionally inflating a vessel's value is a fraudulent act. The only ethical choice is to conduct an objective appraisal based on the vessel's actual condition and fair market value. If the client insists on a fraudulent value, the surveyor must refuse the assignment.

After completing a survey and submitting the report, a surveyor is offered a lucrative contract to perform the recommended repairs on the same vessel. According to the ethical standards of major marine surveying organizations, what should the surveyor do?

Answer: Refuse to perform the repairs, as this would create a significant conflict of interest.

Performing repairs on a vessel that one has surveyed is a classic and significant conflict of interest. It calls into question the objectivity of the initial survey findings, as a surveyor could potentially exaggerate defects to create more repair work. Major ethical codes for marine surveyors explicitly prohibit this practice to maintain the integrity and independence of the survey profession. The surveyor must decline the repair work.