Read the case study below, then answer the questions. Be sure to explain your answers in detail.

Pam, a single mother, has fallen on relatively hard times. Sales have been slow in her market, and most of her backup funds have been used up. Unless things improve soon, Pam worries that she may have to consider leaving the businessa business that she truly loves and believes that she has a great deal to offer buyers and sellers. This weekend, Pam is holding an open house on one of her better listings, a large five-bedroom home in one of the nicer subdivisions, listed at $450,000. After a fairly slow day, a couple entered the property, and after greeting the prospects, Pam disclosed that she was the seller's agent and invited them to view the property. During the showing, the prospects exhibited a definite interest in the property and began questioning Pam about possible financing alternatives and procedures for making an offer. Pam produced the Information About Brokerage Service form and began to explain the agency options. At that point, the prospects interrupted, telling Pam that they had already seen and signed such a form with another agent from a competing company. In fact, they had been shown this house and a number of other properties last week by the other agent. After careful consideration, they had decided to make an offer on this house; however, the other agent was on vacation this week and, upon seeing the open house advertised and fearing that the property might be sold came directly to Pam to make an offer. Upon further questioning, Pam discovers that the prospects' status with the other company is that of customer and that they have not entered into a buyer representation contract. They would like to make an offer through Pam today. Pam produces the necessary paperwork and completes the offer, which was later delivered to and accepted by the seller. The following week, the other agent, upon learning of the transaction, threatens legal action, a formal complaint to TREC, and a procuring cause complaint through the local association of REALTORS.

Consider the levels of guidelines described in the preceding case:Consider the levels of guidelines described in the preceding case:

• Federal Law
• State law
• Local ordinances
• TRELA
• TREC
• NAR Code of Ethics
• Company code of ethics
• Pam's personal code of ethics

Use the information in this case study to answer the Case Study Questions below.

1. While sales agent Pam is holding an open house, a couple enters the open house. Sales agent Pam orally discloses her agency relationship with the seller and hands the couple the Information About Brokerage Services (IABS) form. According to TRELA, is this the appropriate action for Pam to take? Why or why not?
2. During the discussion Pam had with the prospective buyer couple, she gave them the Information About Brokerage Services form, and as she was explaining the form, the couple interrupted Pam and told her that they had already "seen and signed" an IABS form that was presented to them by another agent from a competing real estate firm. What course of action should Pam take? I she allowed to assist the couple during the open house? What does signing an IABS form mean with regard to agency relationships?
3. After Pam assists the buyers in preparing their offer by providing them with the necessary contract forms, the buyers sign the offer and she presents the buyer's offer to her sellers. The offer included nothing about the other agent's right to a commission and no acknowledgment of what was likely an MLS placed listing, which offers compensation to other brokers who procure buyers for the property. What relationship do Pam and her broker have with the couple as a result of Pam's actions? Explain.
4. What actions or procedures could Pam and her broker have taken tohelp resolve the issues of anger, lawsuits, complaints to TREC and NAR ethics violations?
5. What do you think is the one most important procedure that the broker could have used or made available that would have most likely avoided the problems that arose in Pam's open house nightmare? Explain.