Which of the following activities by real estate brokers would constitute an antitrust violation?
Correct Answer
B) Agreeing with competing brokers to fix commission rates
Under federal antitrust law (Sherman Antitrust Act), competing brokers agreeing to fix or standardize commission rates constitutes illegal price-fixing. Each brokerage must independently set its own commission rates. Other antitrust violations include market allocation and group boycotts. Competing aggressively, offering discounts, and joining an MLS are all lawful activities.
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Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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