RCE Module 2 Real Estate Exam Questions & Answers 2026 (1–10)

Question 1

What is the primary concern of antitrust law as it applies to REALTOR® associations?

TheoryPractice · Accepted Answer

Prohibiting agreements that unreasonably restrain trade. Antitrust law primarily prohibits agreements that unreasonably restrain trade, which in REALTOR® associations can manifest as price-fixing discussions among competing brokers who are association members.

Question 2

Which of the following discussions at a board meeting would MOST likely raise antitrust concerns?

TheoryPractice · Accepted Answer

What commission rates members should charge. Discussions about what commission rates members should charge is a clear example of price fixing, which violates antitrust laws.

Question 3

Under the duty of loyalty, what must association directors avoid?

TheoryPractice · Accepted Answer

Conflicts of interest. The fiduciary duty of loyalty requires directors to avoid conflicts of interest where their personal interests might conflict with those of the association.

Question 4

Which of the following is a key difference between governance and management in a REALTOR® association?

TheoryPractice · Accepted Answer

The board sets policy while staff implements it. Governance (board) focuses on setting policy, direction, and oversight, while management (staff) is responsible for implementing policies and day-to-day operations.

Question 5

What should an Association Executive do if board members begin discussing what commission rates 'should be' during a meeting?

TheoryPractice · Accepted Answer

Immediately stop the discussion and explain the antitrust risk. To avoid antitrust violations, the AE should immediately stop the discussion, explain the antitrust risk, document the intervention, and potentially seek legal counsel if needed.

Question 6

Which government agencies primarily enforce federal antitrust laws that affect REALTOR® associations?

TheoryPractice · Accepted Answer

FTC and DOJ. The Federal Trade Commission (FTC) and Department of Justice (DOJ) are the primary federal agencies that enforce antitrust laws affecting REALTOR® associations.

Question 7

Which type of insurance is MOST important for protecting the association against claims related to board member decision-making?

TheoryPractice · Accepted Answer

Directors and Officers (D&O) insurance. Directors and Officers (D&O) insurance specifically protects the organization and its board members from claims related to governance decisions and actions.

Question 8

What is the legal doctrine that can hold an association liable for actions of its volunteers when they are acting on behalf of the association?

TheoryPractice · Accepted Answer

Respondeat superior. Respondeat superior ("let the master answer") is a legal doctrine holding organizations liable for the actions of their agents, including volunteers acting on behalf of the association.

Question 9

Which fiduciary duty requires board members to make informed decisions after appropriate research and consultation?

TheoryPractice · Accepted Answer

Duty of care. The duty of care requires board members to be informed, attentive, and prudent in their decision-making, which includes proper research and consultation.

Question 10

Which of the following activities would MOST likely trigger DOJ or FTC scrutiny of a REALTOR® association?

TheoryPractice · Accepted Answer

Policies that appear to exclude innovative business models. Attempts to exclude innovative business models or restrict competition are most likely to trigger regulatory scrutiny, as they may violate antitrust laws by restricting market competition.

RCE Module 2 Real Estate Exam Questions & Answers 2026 (1–10)

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