Fair Housing

A South Carolina property management company uses an algorithm to screen applicants. If the algorithm results in disparate impact against a protected class, it may:

AAlways be used as it is objective
BViolate the Fair Housing Act if it cannot be justified by business necessity✓ Correct
CBe used freely as technology is exempt from fair housing laws
DOnly be challenged in federal court

Explanation

Algorithmic screening that produces disparate impact on a protected class may violate the Fair Housing Act unless justified by business necessity. Objective tools are not automatically exempt from fair housing scrutiny.

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