Under the Conduct section of the USPAP Ethics Rule, which act is prohibited?
Correct Answer
C) Performing an assignment with bias
The Conduct section requires impartiality, objectivity and independence; among its prohibitions, an appraiser must not perform an assignment with bias. Fees, declining work and using models are not prohibited.
Why This Is the Correct Answer
Option C is correct because the Conduct section states that an appraiser must not perform an assignment with bias. This follows from the requirement to perform assignments with impartiality, objectivity and independence, without accommodation of personal interests.
Why the Other Options Are Wrong
Option A: Charging a different fee from competing appraisers
Option A, charging a different fee from competing appraisers, is wrong because USPAP does not regulate fee levels among competitors.
Option B: Declining an assignment for lack of time
Option B, declining an assignment for lack of time, is wrong because appraisers may decline work; USPAP does not require accepting every assignment offered.
Option D: Using a computer model to support adjustments
Option D, using a computer model to support adjustments, is wrong because models are permitted tools, provided the appraiser uses them competently and the results are credible.
Bias breaks conduct
Impartial, objective and independent: bias breaks all three, so it is the Conduct violation.
How to use: Use this to pick out the Conduct prohibition from lists of ordinary business choices.
Exam Tip
Business choices like pricing, scheduling and tools are rarely ethics violations; look for the option involving bias, advocacy or dishonesty.
Common Mistakes to Avoid
- -Thinking declining assignments violates USPAP
- -Believing USPAP prohibits using statistical or computer models
- -Assuming fee differences among appraisers are unethical
Concept Deep Dive
Analysis
This question tests a specific prohibition in the Ethics Rule's Conduct section. Appraisers must perform assignments with impartiality, objectivity and independence, and must not perform an assignment with bias. Ordinary business decisions like fee levels, declining work and using models are not prohibited.
Background Knowledge
The Conduct section is the core of USPAP's ethical requirements for impartiality. It prohibits bias, advocacy for a party or issue, accepting assignments with predetermined opinions, misleading or fraudulent reports, and discriminatory value opinions, among other duties.
Real-World Application
An appraiser is asked to value a home owned by a close friend's family and feels pressure to come in high. Recognizing she cannot perform the assignment without bias, she declines it.
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