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A brokerage's policy manual requires all agents to follow the company's code of conduct, which sets ethical standards above the minimum legal requirements. An agent objects, claiming only the law matters. What is the BEST response?

Correct Answer

C) Professional codes of ethics are voluntarily adopted standards that may exceed minimum legal requirements and are binding on members or employees who agree to them

Professional codes of ethics are industry standards of conduct that often exceed minimum legal requirements. When adopted by a brokerage or professional organization, they are binding on those who agree to follow them.

Answer Options
A
The agent is correct; only statutory requirements are enforceable
B
The code of conduct is valid only if approved by the state legislature
C
Professional codes of ethics are voluntarily adopted standards that may exceed minimum legal requirements and are binding on members or employees who agree to them
D
The brokerage cannot impose standards beyond what the law requires

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Related Topics & Key Terms

Key Terms:

brokerage_operationspracticeethicscode_of_conduct
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