Legal & Ethical Standards in Appraisal Flashcards
6 cards from real BCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Legal & Ethical Standards in Appraisal flashcards as text
Why is adherence to legal standards important in business appraisal?
Answer: To ensure compliance and ethical standards
Legal compliance ensures appraisals are conducted ethically and in accordance with established regulations, maintaining credibility and accuracy.
Which organization establishes ethical guidelines for business appraisers?
Answer: Uniform Standards of Professional Appraisal Practice (USPAP)
The Uniform Standards of Professional Appraisal Practice (USPAP) sets ethical and performance standards for appraisers in the U.S.
What is a key ethical responsibility of an appraiser?
Answer: To provide unbiased and objective valuations
Appraisers must remain impartial and objective to provide accurate and fair valuations without bias or external influence.
Why must appraisers maintain confidentiality?
Answer: To protect sensitive business information
Confidentiality protects sensitive business data and maintains trust between the appraiser and the client.
Which of the following is a legal consequence of unethical appraisal practices?
Answer: Legal penalties and loss of certification
Unethical appraisal practices can lead to legal penalties, revoked licenses, and reputational damage.
What is a conflict of interest in business appraisal?
Answer: A financial or personal relationship affecting objectivity
A conflict of interest occurs when an appraiser has a financial or personal relationship that could influence their objectivity.