Two brokers secretly agree to charge identical commissions and divide service territories. These practices violate:
Correct Answer
B) Federal Sherman Antitrust Act
The Federal Sherman Antitrust Act, 15 U.S.C. §§ 1-7, is the correct answer because both price-fixing (agreeing on identical commission rates) and market allocation (dividing service territories) are classic per se violations of Section 1 of the Act, which prohibits 'every contract, combination...or conspiracy in restraint of trade or commerce.' The Department of Justice and the Federal Trade Commission actively enforce these provisions in the real estate industry, and violations can result in criminal prosecution, fines up to $100 million for corporations, and civil liability.
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