Fair Housing
A real estate developer who markets a luxury condominium community exclusively in suburban newspapers and never in publications distributed in predominantly minority communities is potentially engaging in:
ALegal targeted marketing to likely buyers
BDiscriminatory marketing that may violate the Fair Housing Act's prohibition on discriminatory advertising✓ Correct
CA required business practice to maximize return on investment
DBlockbusting in the suburban market
Explanation
Selectively marketing housing in ways that effectively exclude minority communities — even without explicitly discriminatory language — can violate the Fair Housing Act. The Fair Housing Act's affirmative marketing requirements encourage broad marketing to ensure equal access to all housing opportunities.
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Key Terms to Know
Fair Housing Act
Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
SteeringAn illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
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