SU # 35__Antitrust Laws Flashcards
What’s the penalty for violating the Sherman Antitrust Act?
The penalties can be severe with fines from the hundreds of thousands to millions as determined by the Federal Trade Commission and up to 3 years in federal prison for each offense.
What is market allocation? Give an example.
Market allocation is the division of markets by location or price. An example would be two companies getting together and deciding that one company would take one part of town, while the other company takes the other part.
Broker Jed tells buyer Sam that when he signs his purchase agreement he must also purchase a subscription to Jed’s monthly newsletter. What would you say about this?
This is a tie-in arrangement which is prohibited by the Sherman Antitrust Act.
What does the Clayton Act allow private individuals to do?
Under the Clayton Act, private individuals are permitted to sue antitrust violators. If the suits are successful, the individuals can recover three times the damages incurred plus court costs and attorneys’ fees.
One broker says to another “I’ll take the east side of town and your company can take the west side.” What is this an example of?
Market allocation
Tie-in arrangement
Group boycott
Price fixing
Market allocation
Two brokers working for the same firm meet over coffee and decide to charge the same set commission rate to all of their sellers. Is this an illegal action?
No. Antitrust laws do not apply to commission rates or MLS fees.
Yes. A broker’s commission must be related to the costs involved in each transaction.
No. The brokers do not represent competing firms.
Yes. It’s a violation of antitrust laws.
No. The brokers do not represent competing firms.
Matt Bower is a developer. Will Jones is a builder. Matt agrees to sell Will a lot, but he conditions the sale by insisting that Will agree to list the property with him after the home is built. What is this called?
Market allocation
Price fixing
Coercion
Tie-in arrangement
Tie-in arrangement
All of the members of one board of REALTORS agree that they will not show the properties of the members of another board of REALTORS. What is this an example of?
Price fixing
Tie-in arrangement
Group boycott
Market allocation
Group boycott
If a group of area brokers have a meeting to set commission rates, what does this violate?
Fair Housing Act
Sherman Antitrust Act
Civil Rights Act of 1968
Jones v. Mayer
Sherman Antitrust Act
Which of these is not a violation of antitrust laws?
Boycott
Price fixing
Redlining
Market allocation
Redlining
