Practice Of Real EstateAntitrustEASY
A seller asks a broker why the commission is 6%. The broker replies, 'That is the standard rate everyone charges in this area.' What potential antitrust concern does this statement raise?
Correct Answer
D) It suggests commissions are fixed by agreement among competitors rather than set independently
Telling a client that a particular rate is 'standard' in the area implies that brokers have agreed on a rate, which is price fixing. Commission rates must be independently established and are always negotiable.
Answer Options
A
It implies a group boycott against discount brokersB
It violates market allocation rulesC
It constitutes a tie-in arrangementD
It suggests commissions are fixed by agreement among competitors rather than set independentlyWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Practice Of Real Estate Question
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Related Topics & Key Terms
Key Terms:
antitrustpracticeprice_fixingcommission
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