Podcast
Questions and Answers
What type of agreement is considered a per se violation of antitrust laws regarding brokerage firms?
What type of agreement is considered a per se violation of antitrust laws regarding brokerage firms?
- An agreement to share client lists
- An agreement to divide territories (correct)
- An agreement to collaborate on marketing
- An agreement to increase commission rates
Which practice could lead to antitrust violations among real estate agents?
Which practice could lead to antitrust violations among real estate agents?
- Sharing market research with competitors
- Allocating customers between firms (correct)
- Forming a cooperative listing service
- Agreeing to refer clients to one another
Why might brokers consider poaching clients impolite?
Why might brokers consider poaching clients impolite?
- It is often illegal under antitrust laws (correct)
- It can lead to loss of reputation
- It disrupts the real estate market structure
- It may cause conflict between firms
What organization's actions resulted in scrutiny from the FTC concerning customer allocation?
What organization's actions resulted in scrutiny from the FTC concerning customer allocation?
What is one potential consequence of real estate professionals working collectively?
What is one potential consequence of real estate professionals working collectively?
What is the primary purpose of the Sherman Antitrust Act of 1890?
What is the primary purpose of the Sherman Antitrust Act of 1890?
Which act amends the Sherman Antitrust Act?
Which act amends the Sherman Antitrust Act?
What does 'per se' violation mean in the context of anti-trust laws?
What does 'per se' violation mean in the context of anti-trust laws?
What are the potential consequences for real-estate brokers engaging in price-fixing?
What are the potential consequences for real-estate brokers engaging in price-fixing?
What might lead to a scenario where real-estate commissions appear standardized?
What might lead to a scenario where real-estate commissions appear standardized?
What should real-estate brokers avoid saying when discussing pricing with customers?
What should real-estate brokers avoid saying when discussing pricing with customers?
What action is classified as a 'per se' anti-trust violation?
What action is classified as a 'per se' anti-trust violation?
What does the term 'treble damages' refer to in anti-trust law?
What does the term 'treble damages' refer to in anti-trust law?
Study Notes
Sherman Antitrust Act
- The Sherman Antitrust Act of 1890 prohibits activities that restrict interstate trade and competition.
- It is codified in 15 U.S.C. 1-38.
- The Act states "Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal.”
- It also prohibits monopolization or attempts at monopolizing any aspect of interstate trade or commerce, making it a felony.
- A court award of treble damages is three times the amount of injury suffered by the injured party.
Anti-Trust Violations
- Price fixing is a 'per se' anti-trust violation.
- Real estate brokers should independently set their prices or risk antitrust liability.
- Real estate associations should never suggest a commission rate.
- Market or customer allocation is a 'per se' anti-trust violation.
- Brokers should not, explicitly or implicitly, agree to divide territories or allocate customers.
- Brokers cannot agree to stay away from each other's clients or former clients.
Collaboration Among Real Estate Professionals
- Real estate professionals often collaborate, despite competing, which can present opportunities for illegal collective activity.
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Description
Test your knowledge on the Sherman Antitrust Act of 1890 and its implications on interstate trade and competition. This quiz covers key aspects, including anti-trust violations and legal consequences. Understand how the Act shapes market behaviors and the legal frameworks surrounding them.
