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Which of the following is true?

  1. California mandates the National Association of Realtors (NAR) code of ethics

  2. California recommends study and observance of the National Association of Realtors (NAR) code of ethics

  3. California ignores the National Association of Realtors (NAR) code of ethics

  4. California forbids following the National Association of Realtors (NAR) code of ethics

The correct answer is: California recommends study and observance of the National Association of Realtors (NAR) code of ethics

Option A is incorrect because California does not mandate the NAR code of ethics, they only recommend studying and observing it. Option C is incorrect because California does not ignore the NAR code of ethics, it just does not mandate following it. Option D is incorrect because California does not forbid following the NAR code of ethics, it simply does not require it.