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Questions and Answers
What can happen if two brokerage firms agree to divide properties by location?
What is an example of a 'per se' violation related to brokerage firms?
Why is poaching clients seen as problematic among real estate agents?
What is a common activity among real estate professionals despite competition?
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What type of activity can arise from the collaboration of real estate professionals?
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What does the Sherman Antitrust Act of 1890 primarily prohibit?
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What are 'treble damages' in the context of antitrust law?
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Which of the following practices is classified as a 'per se' violation of antitrust laws?
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What behavior should real estate brokers avoid to comply with antitrust laws?
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What does market or customer allocation imply in terms of antitrust violations?
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What is one of the consequences of price fixing among real estate brokers?
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Why should brokers avoid suggesting that their commission rates are set collectively?
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What is a correct practice for real estate brokers when discussing commissions?
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Study Notes
Sherman Antitrust Act
- The Sherman Antitrust Act of 1890 prohibits activities that restrict interstate commerce and competition.
- It was amended by the Clayton Act in 1914.
- It is codified in 15 U.S.C. 1-38.
- The Act declares illegal "every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce."
Monopolization
- Prohibits monopolization or attempts at monopolizing any aspect of interstate trade or commerce.
- Violators face criminal charges.
Treble Damages
- A court can award treble damages, which is three times the amount of injury suffered by the injured party.
Price Fixing
- Price fixing is a "per se" antitrust violation – it is always illegal, regardless of its effects.
- Real estate brokers should independently set their prices.
- They cannot agree on commissions or commission splits.
- Statements about standard commissions or prices set by real estate associations can be considered price fixing.
Market or Customer Allocation
- Market or customer allocation is a "per se" antitrust violation.
- Brokers cannot agree to divide territories or allocate customers.
- For example, agreeing not to poach clients violates antitrust laws.
Working Together
- Real estate professionals work together frequently, but they should be aware of potential antitrust violations.
- Organizations like real estate associations and multiple-listing services present opportunities for illegal collective activity.
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Description
This quiz covers key aspects of the Sherman Antitrust Act of 1890, its relation to monopolization, and the consequences of price fixing. Learn about the legal framework aimed at maintaining competition and preventing unfair trade practices in the United States. Test your knowledge about treble damages and the implications for real estate brokers.
