A Minnesota real estate broker is accused of steering African American buyers away from a predominantly white suburb and toward a predominantly minority neighborhood in the Twin Cities metro area. The buyers file a complaint with the MDHR. The broker claims the steering was based solely on the buyers' stated price range and school district preferences, not on race. Under the Minnesota Human Rights Act, which legal theory would most effectively support the complainant's case even if the broker's stated reason is accepted as true?
Correct Answer
D) Disparate impact theory, which examines whether the broker's facially neutral practices produced discriminatory effects on a protected class
Under the Minnesota Human Rights Act (Minn. Stat. Ch. 363A) and fair housing law generally, the disparate impact theory allows a complainant to establish discrimination by showing that a facially neutral practice — such as directing buyers based on 'price range' or 'school preferences' — produces a discriminatory effect on a protected class (here, race), even without proof of intentional discriminatory motive. If the broker's practices consistently channeled African American buyers to minority neighborhoods regardless of stated neutral criteria, disparate impact analysis would apply. This is particularly powerful when the broker's stated justification, even if accepted as true, still results in racially segregated outcomes.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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