Under fair lending regulations, which statement about disparate impact is correct?
Correct Answer
B) It can occur even when policies are applied equally to all applicants
Disparate impact discrimination can occur when facially neutral policies that are applied equally to all applicants nevertheless have a disproportionate adverse effect on protected classes. Intent to discriminate is not required for disparate impact claims, and the discrimination can result from seemingly neutral business practices.
Why This Is the Correct Answer
Disparate impact discrimination can occur when facially neutral policies that are applied equally to all applicants nevertheless have a disproportionate adverse effect on protected classes. Intent to discriminate is not required for disparate impact claims, and the discrimination can result from seemingly neutral business practices.
More Ethics & Fraud Questions
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