Question

Lisa, a buyer, filed an ethics complaint against REALTOR® Sam. Lisa requested arbitration. Must Sam comply?

a) Yes
b) No

Answer 1

Yes, Sam must comply with Lisa's request for arbitration according to the Code of Ethics.

Step-by-step explanation:

Yes, Sam must comply with Lisa's request for arbitration.

As a REALTOR, Sam is bound by the Code of Ethics and Standards of Practice established by the National Association of REALTORS (NAR). The Code requires that REALTORS® submit to arbitration when requested by another party in a dispute arising out of a real estate transaction. By filing an ethics complaint and requesting arbitration, Lisa has initiated a dispute that falls within the scope of the Code, and Sam is obligated to comply.

An example of this can be seen in the NAR Code of Ethics, Article 17, which states that a REALTOR® shall not refuse to submit to arbitration in an ethics matter when required by an agreement to arbitrate.

Answer 2

If Lisa filed an ethics complaint against Sam and requested arbitration, Sam must comply. Arbitration is a method of resolving disputes outside of court, where an impartial third party makes a binding decision. Sam must participate in the arbitration process.

Step-by-step explanation:

If Lisa, a buyer, filed an ethics complaint against REALTOR® Sam and requested arbitration, Sam must comply. Arbitration is a method of resolving a dispute outside of court, where an impartial third party, known as the arbitrator, makes a decision that is binding on both parties. It is a common way to resolve ethical complaints in the real estate industry. By requesting arbitration, Lisa is invoking a process that both parties agreed to when they became members of the organization that governs real estate professionals. Sam is obligated to participate in the arbitration process and abide by the decision made by the arbitrator.