CMCA EXAM 2024 REAL EXAM QUESTIONS AND CORRECT ANSWERS(VERIFIED ANSWERS)|AGRADE

CMCA EXAM 2024 REAL EXAM QUESTIONS AND CORRECT ANSWERS(VERIFIED ANSWERS)|AGRADE Ad hoc committee Used when an objective needs consideration and no standing committee within the organization can absorb that issue into its scope. Usually these committees are used on a short-term basis, such as temporary oversight of an issue or review of the standing rules of that community. Alternative dispute resolution Mediation, arbitration and other ways of resolving conflicts with the help of a specially trained neutral third party without the need for a formal trial or hearing. Appeal A request for a review of a case by a higher authority—if permitted by the governing documents or statute. Articles of incorporation Bring the corporation into existence, define its basic purposes and powers, indicate whether stock will be issued, and indicate whether there will be a board of directors. Board liaison system Directors are assigned to certain committees to guide the committee on Board policy and procedures and to report back to the Board. Directors serving as a liaison must distinguish their role from the role of the committee chairperson. Business judgment rule If a board has exercised reasonable business judgment in making a decision, the court will generally not consider the board negligent in its fiduciary duty, nor will the court substitute its judgment for that of the board. However, the board must demonstrate how it has taken care in reaching a decision. Bylaws Formally adopted governing regulations for the administration and management of a community association. CC & Rs (Covenants, Conditions & Restrictions) The governing documents that dictate how the homeowners association operates and what rules the owners—and their tenants and guests—must obey. These legal documents might also be called the bylaws, the master deed, the houses rules or another name. Community association A group of owners who wish to provide a communal basis for preserving, maintaining, and enhancing their homes and property. Condominium A living unit fully owned by an individual with an undivided interest in the common elements of the community. The community association itself owns no real estate as an association. Cooperative Wherein an individual owns stock or membership in the cooperative, and holds a proprietary lease or occupancy agreement for his or her living unit. Declaration Declaration is used interchangeably with CC & Rs. Default hearing A hearing held when the alleged violator fails to appear. Due process procedure A formal process designed to protect the rights of all parties involved. Employee handbook Also known as a personnel manual. The employee handbook summarizes company behavior requirements, outlines benefits offered and also gives tools that can be used to enforce disciplinary action if needed. Employment at will This is a statement to the effect that the community association retains the right to dismiss an employee without cause at any time. Fiduciary duty Requires directors to act in the best interests and for the benefit of the corporation, thus the community as a whole. Governing documents Documents which provide for the legal structure and operation of the community. Hearing notice This is a written notice to an alleged violator that a hearing will be held to consider his or her alleged violation. Hierarchy of authority Rules and architectural guidelines may not contradict or be in conflict with the legal sources that take precedence over them. Indemnification To indemnify and hold harmless means to exempt an individual or entity from responsibility for claims made against the organization and to reimburse the individual or entity for damages or expenses incurred as a result of such claims. Job description A job description is a specific description of the required duties of a position, skills and knowledge necessary to perform required duties, and reporting relationships of the position. Management audit A management audit consists of a review of governing documents and existing policies and procedures, current condition of the property, owner/resident satisfaction, and fiscal operations. Management ethics The term 'ethics' refers to the specific choices to be made by an individual in his or her relationships with others. Management plan A management plan is a statement of goals and objectives approved by the board. Master association An organization of homeowners in a large condominium or planned unit development (PUD) which includes representatives from other, smaller homeowner organizations