EstatePass
Practice Of Real EstateAntitrustMEDIUM

Which of the following activities by competing brokers would constitute an antitrust violation?

Correct Answer

B) Agreeing with competing brokers to charge the same commission rate

Price-fixing — where competing brokers agree to charge the same commission rate — is a per se violation of the Sherman Antitrust Act. Such agreements eliminate price competition and are illegal regardless of the rates agreed upon. By contrast, MLS participation, offering discounts, and competing for listings are all lawful competitive activities. Antitrust violations in real estate can result in criminal prosecution, substantial fines, and civil liability.

Answer Options
A
Cooperating through a Multiple Listing Service (MLS)
B
Agreeing with competing brokers to charge the same commission rate
C
Offering discounted commission rates to attract clients
D
Competing for listings in the same geographic market

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Related Topics:

Sherman Antitrust Actprice-fixingper se violationsMLS cooperationcommission negotiability

Key Terms:

price-fixingSherman Antitrust Actper se violationcommission ratesantitrust
Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing