Ch 21 Quizzes Flashcards
The ___ is one of two agencies that enforces federal antitrust law.
Dept of Justice
The ___ is the primary federal antitrust law
Sherman Act
The Sherman Act was passed in ___
1980
The Sherman Act made it illegal for companies to create ___.
monopolies
Antitrust laws are designed to prevent unreasonable ___ on trade
restraints
___ is any act that prevents an individual or company from doing business in a certain area or with certain people
restraint of trade
3 factors to Restraint of Trade:
- Per Se Rule
- Rule of Reason
- Quick look Test
Per Se Rule
rule that is automatically illegal regardless of circumstances, excuse, or intent.
It doesn’t matter whether the parties had any intent to break the law.
Rule of Reason
a balancing test – Courts use it to weigh the activity’s impact on competition.
If the activity’s negative effects (for instance, higher prices, a deterioration of services, or stifled innovation) outweigh the positive effects, the court will decide that it is an unreasonable restraint of trade.
Quick look Test
a shortened version of the rule of reason test.
Antitrust laws focus on group action in the form of ___
conspiracy
T/F: Two brokers who discuss a commission split for a specific transaction are engaging in price fixing
False
“brokers may discuss commission splits without violating antitrust laws. However, they should avoid setting a standard commission split to apply to all transactions”
T/F: If two brokers decide not to work with another broker because they feel he is dishonest, they are engaging in a group boycott
True
Regardless of the reason, an agreement to exclude other brokers from fair participation in real estate activities is a group boycott
T/F: A tie-in arrangement is a per se violation of antitrust laws
True
A __ occurs when a buyer is required to purchase something additional along with the product or service that he wants.
tie-in arrangement
