Fair Housing
A Minnesota property management company uses a tenant screening algorithm that results in 40% fewer approvals for Latino applicants than White applicants with similar qualifications. This may violate fair housing laws under the theory of:
ADisparate treatment (intentional discrimination)
BDisparate impact (unintentional discrimination)✓ Correct
CBlockbusting
DSteering
Explanation
Disparate impact theory holds that facially neutral policies or practices that disproportionately harm protected classes may violate fair housing laws, even without discriminatory intent. The algorithm's disparate impact on Latino applicants would require the company to show a business necessity for the practice. Minnesota's Human Rights Act recognizes disparate impact claims.
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