REALTOR^® A, a residential broker, worked in a market area that included an attractive suburb of a large city. At the time that REALTOR^® A launched a new advertising program, there were a number of houses for sale in the neighborhood listed exclusively with other REALTORS^®, each having the respective listing broker's sign on its front lawn.

Working with his advertising agency, REALTOR^® A developed a special brochure describing the service of his offices and soliciting clients. The format of the brochure was designed so that it could be hung over a door knob, and a commercial distribution service was employed to hang one of these brochures on homes in REALTOR^® A's market area.

In the course of distributing REALTOR^® A's brochures, the commercial distribution service placed a brochure on the front door of every house in REALTOR^® A's market area, including houses that had other REALTORS^®' signs in the front yard. Several of the REALTORS^® whose clients received REALTOR^® A's brochures filed complaints with the Board against REALTOR^® A. The Grievance Committee considered the complaints and referred them to the Secretary to schedule a hearing by a Hearing Panel of the Professional Standards Committee, at which time all of the complaints would be considered. The complainants charged REALTOR^® A with unethical conduct in failing to respect the exclusive agency of other REALTORS^®.

At the hearing, REALTOR^® A defended his action by saying that the distribution of his advertising brochures was widespread in nature; that it had been carried out by a commercial distribution service; and that it was of the same nature as radio or television advertising or a general mailing that might come to the attention of some clients having exclusive listing contracts with other REALTORS^®.

Based on your understanding of the Code of Ethics Article 16, what do you think the hearing panel concluded? Show Answer