This Code of Ethics, enacted by the Board of Directors of CABB, shall be a part of the By-Laws of the Association as referenced by ARTICLE XVII of said By-Laws. The code is for use by all members of the Association as a means of establishing a uniform standard of conduct for business brokers. Additions may be made to the Code from time to time by the Board of Directors so long as the new provisions are not inconsistent with the existing Code.
PRELUDE
We will adhere to the ethical principal of business and believe that the investment risk and effort required to build a profitable ongoing business or enterprise deserves a fair evaluation and a straightforward, professional and honest presentation to both seller and buyer.
ARTICLE 1. Members shall keep themselves informed as to the trends affecting business sales.
ARTICLE 2. Members shall make every reasonable attempt to protect all parties to a transaction from fraud, misrepresentation and/or unethical practices.
ARTICLE 3. Members shall not represent themselves as experts in legal or accounting matters and shall recommend to clients that they use professionals in these areas.
ARTICLE 4. Members shall not use coercion or deception to promote the sale of any business.
ARTICLE 5. Members shall make every attempt to properly evaluate a business to be listed using generally accepted methods of evaluation. They shall make every attempt to properly list a business at the evaluated price.
ARTICLE 6. Members shall not undertake any business evaluation or appraisal that is beyond their level of expertise.
ARTICLE 7. Members shall make full disclosure to the buyer if they also represent the seller in the transaction.
ARTICLE 8. Members, in accepting employment as agents, pledge to protect and promote the interests of their clients.
ARTICLE 9. Members shall promote the use of trained professional business brokers whenever possible, thus developing the skills necessary to rise to a higher level of professionalism.
ARTICLE 10. Members shall strive to further their education in the profession of business brokerage, thus developing the skills necessary to rise to a higher level of professionalism.
ARTICLE 11. Members shall abide by all the Real Estate Laws of the State of California and by the Rules and Regulations of the Bureau of Real Estate of the State of California.
ARTICLE 12. Members shall promote the sole and exclusive listing of any property they attempt to sell.
ARTICLE 13. Members shall share the responsibilities in a sale when cooperating with other Association Members. Members are encouraged, but not required, to cooperate with other Members.
ARTICLE 14. Members shall never directly contact another members client without first having communicated and received permission to do so from said member. No member shall show another members listed business without first obtaining permission to do so from the listing member.
ARTICLE 15. Members shall, in the best interests of the Association, be active in community affairs.
ARTICLE 16. Members shall conduct their business as to avoid controversies with their fellow brokers and cooperate with the Association in all matters, including investigation, censure, discipline, or dismissal of members who, by their conduct, prejudice their professional status or the reputation of the Association. If a member is charged with unethical practices, he or she should, in a timely manner, place all pertinent facts before the Association Board of Directors or designated grievance committee for investigation and decision.
ARTICLE 17. Members shall not discriminate in any way against any client or customer in the course of their business activity, based on that persons race, sex, national origin or creed.
ARTICLE 18. Members shall not use bait and switch techniques to lure buyers by advertising businesses they do not have for sale.