Tennessee Real Estate Practice Exam

What is the minimum percentage of the value for each prize or gift that must be awarded?

1. 5%

2. 10%

3. 1%

4. 20%

The correct answer is: 1%

In the context of real estate and promotions in Tennessee, the minimum percentage of the value that must be awarded for each prize or gift is typically set at 1%. This requirement ensures that the promotional activities are not misleading and that participants receive a tangible benefit, however small, from their involvement. The regulation aims to promote fairness in promotional practices, assuring consumers that they won't be participating in giveaways that offer no real return or benefit. By stipulating this minimum percentage, it creates a standard that protects consumers and upholds the integrity of promotional contests and giveaways in real estate and other sectors.