CMCA - Certified Manager of Community Associations Ethics and Professional Conduct Questions and Answers — Questions and Answers
Question 1: A community manager's sibling owns a commercial landscaping company. The company submits a bid for the association's grounds maintenance contract that is competitive with other bids. What is the manager's most ethical course of action?
- Advocate for their sibling's company since they can personally vouch for the quality of work.
- Disclose the relationship in writing to the board of directors and recuse themselves from the decision-making process. (Correct answer)
- Reject the bid outright to avoid any possible appearance of a conflict of interest.
- Recommend their sibling's company only if it is the lowest bid received.
Correct answer: Disclose the relationship in writing to the board of directors and recuse themselves from the decision-making process.
The CMCA Standards of Professional Conduct require managers to promptly disclose any actual or potential conflicts of interest to the client association. By disclosing the relationship in writing and removing themselves from the decision-making process, the manager maintains transparency and upholds their fiduciary duty to the association, allowing the board to make an objective decision.
Question 2: Which of the following actions best demonstrates a community manager upholding their fiduciary duty to the association?
- Approving a friend's architectural request that slightly deviates from the guidelines to maintain a good relationship.
- Waiving a late fee for a homeowner who is also a board member, without a formal policy allowing such waivers.
- Negotiating a lower price with a vendor for a service, resulting in significant savings for the association's operating budget. (Correct answer)
- Sharing confidential details from an executive session with a homeowner who is not on the board.
Correct answer: Negotiating a lower price with a vendor for a service, resulting in significant savings for the association's operating budget.
Fiduciary duty requires a manager to act in the best interests of the association, which includes acting with care, loyalty, and diligence. Negotiating a better price for services directly benefits the association financially and is a clear example of the manager acting in the client's best interest. The other options represent breaches of duty through favoritism, unequal application of rules, or breaking confidentiality.
Question 3: During a heated conversation, a homeowner demands the personal cell phone number of the board president to complain about a recent violation notice. The manager has this information readily available. What is the most appropriate response from the manager?
- Provide the board president's number to de-escalate the situation with the homeowner.
- Suggest the homeowner look up the number in the community directory.
- Refuse to provide the number and explain that all official communication should be directed through the management office or official association channels. (Correct answer)
- Tell the homeowner they will text the board president and ask them to call the homeowner back immediately.
Correct answer: Refuse to provide the number and explain that all official communication should be directed through the management office or official association channels.
A manager has a duty to maintain the confidentiality of information entrusted to them, which includes the personal contact information of board members and residents. The proper and professional approach is to direct the homeowner to use official communication channels, protecting the board member's privacy and ensuring a proper record of the communication is maintained.
Question 4: After a major and successful capital improvement project, the primary contractor sends the community manager a gift basket containing a $200 gift card. According to the CMCA Standards of Professional Conduct, what should the manager do?
- Accept the gift as a well-deserved bonus for managing the project effectively.
- Politely decline the gift, explaining that their professional ethics prohibit accepting gratuities that could influence decisions. (Correct answer)
- Accept the gift but disclose it to the board president to ensure transparency.
- Use the gift card to purchase supplies for the community clubhouse.
Correct answer: Politely decline the gift, explaining that their professional ethics prohibit accepting gratuities that could influence decisions.
The CMCA Standards of Professional Conduct state that a manager shall refuse to accept any form of gratuity or compensation that may improperly influence their decisions. A gift of significant value, such as a $200 gift card, could be perceived as an attempt to gain favor for future contracts. The most ethical action is to politely refuse it.
Question 5: A manager has a strong personal friendship with a homeowner in the community they manage. To maintain professional conduct and avoid ethical issues, the manager should:
- Use their discretion to grant the friend small favors, such as extending deadlines for fee payments.
- Ensure all association rules and policies are applied to their friend in the exact same manner as they are to all other residents. (Correct answer)
- Resign from managing the property to avoid any potential for a conflict of interest.
- Advise the board to appoint the friend to an open committee position.
Correct answer: Ensure all association rules and policies are applied to their friend in the exact same manner as they are to all other residents.
A manager's primary ethical obligation is to the association as a whole, which requires them to act with integrity and fairness. While having a friendship is not unethical in itself, the manager must be diligent in applying all rules, policies, and procedures consistently and impartially to all residents, including their friends, to avoid any breach of fiduciary duty or appearance of favoritism.
Question 6: Which of the following actions by a community manager would constitute an unauthorized practice of law?
- Drafting a formal letter to a homeowner detailing their violation of a specific covenant as outlined in the governing documents.
- Advising the board of directors on the legal interpretation of a recently passed state statute affecting community associations.
- Forwarding a draft of a proposed rule change to the association's attorney for review and comment. (Correct answer)
- Explaining the association's established collections process, as defined in a board-approved policy, to a new board member.
Correct answer: Forwarding a draft of a proposed rule change to the association's attorney for review and comment.
The CMCA Standards of Professional Conduct explicitly prohibit managers from providing legal advice or engaging in the unlicensed practice of law. Interpreting state statutes and advising the board on their legal meaning falls into this category. The other actions, such as citing documents, communicating with legal counsel, and explaining established procedures, are all within the appropriate scope of a manager's duties.
CMCA - Certified Manager of Community Associations Ethics and Professional Conduct Questions and Answers
A community manager's sibling owns a commercial landscaping company.
The company submits a bid for the association's grounds maintenance contract that is competitive with other bids.
What is the manager's most ethical course of action?