Practice Of Real EstateAntitrustMEDIUM
A broker tells a prospective seller, 'Our commission is 6%, and it's fully negotiable -- that's the rate our brokerage has chosen independently.' Which statement BEST describes why this approach is acceptable under antitrust law?
Correct Answer
D) It is acceptable because the broker makes clear the rate is independently set and negotiable
Antitrust law allows each brokerage to independently set its own commission rates. By stating the rate is independently chosen and negotiable, the broker avoids any implication of price fixing.
Answer Options
A
It is acceptable because 6% is below the legal maximumB
It is acceptable because the broker obtained permission from the local boardC
It is acceptable only if the broker has fewer than 10 agentsD
It is acceptable because the broker makes clear the rate is independently set and negotiableWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Related Topics & Key Terms
Key Terms:
antitrustpracticeindependent_pricingcommission
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