Code of Ethics

This Code of Ethics was enacted by the Members of the New England Business Brokers Association (the “Association”) and is a part of the bylaws of the Association. This Code is for the use by all members of the Association as a means of establishing a uniform standard of conduct for business broker members.

Preamble:
We adhere to the ethical principle of business and believe 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 One: The business broker will keep himself/herself informed as to trends affecting business opportunities.

Article Two: The business broker will make a reasonable effort to protect the public and all parties to a transaction against fraud, misrepresentation, or unethical practices in the area of business opportunities.

Article Three: The business broker will recommend that clients use attorneys and tax accountants for independent advice on transactions.

Article Four: The business broker will keep monies coming into his/her possession in trust for other persons in a special bank account, separated from his/her own funds and accounted for separately.

Article Five: The business broker, for the protection of all parties with whom he/she deals, will see that financial obligations and commitments regarding transactions of which he/she is a part are in writing, expressing the exact agreement of the parties. He/she will also see that copies of such agreements are given to all parties involved.

Article Six: A business broker, in accepting employment as an agent, pledges himself/herself to protect and promote the interests of the client. These obligations of absolute loyalty and honesty to his/her client's interests are primary, but they do not relieve the business broker from the obligations of dealing fairly with all parties to the transaction.

Article Seven: Since the business broker is representing one or another party to a transaction, he/she will not accept compensation from more than one party (act as a dual agent) without full knowledge and written consent of all parties to the transaction.

Article Eight: The business broker will not serve as both principal and consultant on a transaction unless full disclosure is made in writing to all principals involved.

Article Nine: The exclusive listing of property should be urged and practiced by the business broker.

Article Ten: The business broker, when acting as an agent in the management of a business, shall not accept any commission, rebate, or profit on expenditures made for an owner without the owner's knowledge and consent.

Article Eleven: The business broker shall not undertake to do a valuation, make an appraisal, or issue an opinion of value that is outside or beyond the scope of his/her experience without first obtaining the assistance of an authority on such types of property, unless the extent or lack of experience of the business broker is fully disclosed to the client.

Article Twelve: A business broker, when doing a valuation or appraisal or issuing an opinion of value of a business opportunity, shall render an opinion only after careful and thorough analysis and interpretation of all market and economic factors affecting the value of the opportunity.

Article Thirteen: The business broker should not undertake to do a valuation, make an appraisal or render an opinion of value on any property when he/she has a present or contemplated interest in it unless such an interest is specifically disclosed in the appraisal. The business broker should not undertake to do a valuation, make an appraisal or render an opinion of value on any property when his/her employment or fee is contingent upon the amount of his/her appraisal.

Article Fourteen: The business broker should not submit or advertise any business without authority. In all offerings the price quoted shall be that agreed upon with the owners as the offering price. A business broker shall always have written authorization to sell or purchase, as the case may, be from the prospective seller or purchaser. Said writing shall include all the material of the terms of the sale or purchase, including price, term of the agreement, and compensation to be paid to the business broker.

Article Fifteen: All bona fide written offers will be submitted to the seller. The decision to accept or reject an offer remains with the seller at all times.

Article Sixteen: The business broker will not engage in the practice of disclosing one buyer's offer to another buyer as a sales technique. This is not to be interpreted so to deny the responsibility of the broker to meet the fiduciary responsibilities due the client in accordance with the agency agreements with the client.

Article Seventeen: The business broker shall seek no unfair advantage over his/her fellow brokers, and will willingly share with them the lessons of his/her experience and study.

Article Eighteen: The business broker should conduct his/her business to avoid controversies with his/her fellow brokers and shall cooperate with the Association and its officers in all matters, including investigations, censure, discipline, or dismissal of members who, by their conduct, prejudice their professional status or the reputation of the Association.

Article Nineteen: In the best interests of the Association, society, and his/her associates, the business broker will be loyal to his/her community and active in its work.

Article Twenty: The business broker shall not deny equal professional services to any persons for reasons of race, creed, sex, or country of origin. The business broker shall not be a party to any plan or agreement to discriminate against a person or persons on the basis of race, creed, sex, or country of national origin.

Article Twenty-one: The business broker shall refrain from continued and prolonged association with individuals or organizations which act in a manner contrary to this Code. Such continued association shall be deemed denial of this Code.
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