Fair Housing
A Utah property manager who uses different qualifying standards (income, credit) for applicants of different races is guilty of:
ASound business judgment
BDisparate treatment—applying different standards based on protected class status✓ Correct
CDisparate impact discrimination only
DReasonable screening practices
Explanation
Applying different qualification standards to applicants of different races is disparate treatment—intentional discrimination based on a protected class—which is a clear Fair Housing Act violation.
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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.
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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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