Which term describes a policy that has a disproportionately adverse effect on a protected class even if there was no intent to discriminate?

• A. Disparate impact
• B. Disparate treatment
• C. Bias
• D. Discrimination by policy

Answer: (A)

Disparate impact describes a policy that, while neutral on its face, has a disproportionately negative effect on a protected class, even when there was no intent to discriminate. In housing and lending, this means a rule that applies to everyone can end up excluding or disadvantaging members of a protected group due to how the rule interacts with real-world demographics. The emphasis here is on the outcome, not the planner’s intent. For example, a screening standard that screens out a large portion of applicants from a protected class, even though it applies to all applicants, can constitute disparate impact. The other terms don’t fit as well: disparate treatment involves deliberate discrimination, bias is a broad prejudice rather than a formal legal standard, and “discrimination by policy” isn’t the recognized legal term.