Practice Of Real EstateAntitrustHARD
An MLS requires all participating brokers to offer a minimum cooperating broker compensation of 2.5% or the listing will not be accepted into the system. What antitrust concern does this policy raise?
Correct Answer
B) It constitutes price fixing because it eliminates independent decision-making on cooperating compensation
Requiring a minimum cooperating broker compensation eliminates independent pricing decisions among competing brokers, which is the essence of price fixing. Compensation must be independently determined by each broker.
Answer Options
A
It is a lawful MLS rule because the MLS may set any standardsB
It constitutes price fixing because it eliminates independent decision-making on cooperating compensationC
It is a tie-in arrangement because MLS participation is bundled with a commission floorD
It is market allocation because it divides commissions between listing and cooperating brokersWhy 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:
antitrustpracticeprice_fixingmls
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