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Red Book Scope and Red Book Exceptions Feb 2016
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Red Book Scope and Red Book Exceptions Feb 2016
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Question 1 Marks: 2 Your client has been charged with money Inundering in her property dealings and you are called as a witness for the prosecution. Bearing in mind your duty of confidentiality, do you: Choose one answer. © a, Testify but refuse to divulge any confidential information © b. Make up a convincing story for the court ‘VO c, Recognise that your prime responsibility is tothe court and tell the truth © d. Refuse to testify against your client on the grounds of client confidentiality © ©, Testify but confirm that you hold confidential information Question 2 Marks: 2 Your friend is buying a house and shows you pictures of a cracked wall. He asks you “oft the record, what you think is causing the cracks?” What should you do? Choose one answer. © a. Advise him a ¢. Refuse to give advice without any explanation: your fiend should nt have tied © to take advantage of your friendship: d. Advise him but tell him not to rely on your advice until you have carried out a © thorough investigation / & Tell him you are not able to diseuss off the record matters in your professional remit, and ask him to instruct you in the normal way Question 3 Marks: 2 Why are ethical principles important? Choose one answer. \ & They form an integral part of any good company’s corporate responsibility strategy. © b. They provide a quick reference guide to the rules. . They provide an absolute set of rules to follow. d. They provide a guide to help you act appropriately im i © ¢, They are helpful when disciplining a member of staff Page | of 7Question 4 Marks: 2 ‘You were advised by a potential client that lowering your original quote for a job would lead to beating a competitor and gaining the commission, Against your recommendation, greed. There are now concems that you may not be able to carry out the job satisfactorily for this fee. What should you do? Choose one answer. a. Withdraw from the job, despite the risk of letting down your client and damaging the reputation of your firm. b. Adjust your accounts and attempt to cover up your mistake of accepting the commission for a lower fee. . Try to renegotiate with the client retrospectively and make good the loss, W~ © d.Cutall possible corners to complete the job within the agreed quote. . Complete the job despite incurring a loss, even if this is not of long-term benefit ‘to your firm, ¢ in Question 5 Marks: 2 ‘You are agreeing your terms and conditions with a client company, and client has not read them. What should you do? Choose one answer. © a, Advise the client to seek legal advice: © b. Refuse the client's business until they can show that they understand the contract, \_» *& Go through the terms and conditions with your client and if they still scem unsure advise them to sesk legal advice, 4, Encourage the client to sign the contract anyway. &Go through the terms and conditions with your client. Your responsibility then ends, clear that the Question 6 Marks: 2 You are an RICS member and hited by a client to supply complete building surveying services for a project involving the design and construction of a building, You recommend to your client that for safety reasons a full-time, on-site project manager be hired. The client declines, saying it would be too expensive. What should you do? Choose one answer. ©. Take the work on regardless \o7 b. Only agree to carry out the work if he appoints an on-site project manager because of safety concems © ¢. Report him to the authorities 4, Encourage him to appoint an on-site project manager, highlighting the safety issues © @.Decline the commission ~~ Page 2 of 7Question 7 Marks: 2 ‘You become aware that a senior colleague is breaking the law. You establish that you hhave no legal duty to report their actions, but the implications could be serious. What should you do? Choose one answer. © a, Hand in your notice and go to the press, b. Report your colleague to the police, ©. Go straight to the chief executive with the information. ¢ e © d. Respect your colleague’s privacy and say nothing. VV .Report your colleague through your firm’s internal whistle-blowing procedure, Question & Marks: 2 Your company prides itself on hiring staff from minority groups, One candidate from a minority group fully fits the job requirements for a vacant position, However, you are ‘concerned that customers will have difficulty understanding her accent. What should you do? Choose one answer. © a, Bind a convenient excuse for not hiring this candidate b. Recruit the candidate to ensure the company’s reputation for hiring minorities is © not jeopardised , Recruit, purely on merit regardless of ethnic origin © 4, Do not consider this candidate as it may affect business ¢. Reeruit the candidate and arrange a language course for het v— Question 9 Marks: 2 You work for a very small business which is an RICS member firm. The partner's wife is ‘employed as his personal assistant and, in his absence, takes on the role and decision- ‘making responsibilities of her husband. You are concemed that she does not have the technical knowledge to make judgements on professional matters, despite her claim that after working 30 years with her husband in the business she knows “all there is to know” about surveying practice. What should you do? Choose one answer. \% a. Suggest to the partner that he delegate decision-making, in his absence, to an ‘employee who is qualified to make judgements on professional matters. ». Challenge her specific instructions and instead send out appropriate advice to clients, © Resign 4. Follow her specific instructions and thus potentially allow the company to offer © inappropriate advice to clients. ¢, Tell the partner that the role his wife plays in professional decisi © inappropriate and dangerous to the reputation of the company) jon making is Page 3 of 7
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