Suppose that a mortgage broker arranges for a subprime loan for a person who could have qualified for a conventional loan. The possibility of a conventional loan was never mentioned to the customer

Has the mortgage broker violated ethics guidelines?
A) No, as long as the mortgage broker did not lie or use coercion during the loan application process.
B) No, because buyers have the sole responsibility for their purchasing decisions.
C) Yes, because arranging for a subprime loan would always be a violation of ethics.
D) Yes, because homebuyers are mentioned among the economically vulnerable segments of society to whom marketers owe a special commitment.
E) Yes, because the mortgage broker violated the ethical value of openness by failing to mention clearly preferable alternatives.

Answer: E
Explanation: E) Failing to mention an alternative product with clearly better terms violates the value of openness, Choice E. Choice A: The American Marketing Association Code of Ethics requires more than the absence of lies or force. Choice B: No, the Code puts more requirements on marketers. Choice C goes too far. There could be circumstances in which selling a subprime loan is an ethical thing to do. Choice D: No, homebuyers are not mentioned in such a category.