Unit 8

Question 1

Anti trust laws

Answer 1

Laws Designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition.

Question 2

Antitrust violations

Answer 2

-Price fixing
-the group boycott
-allocation of customers
-Allocation of markets
-tie-in agreements

Question 3

Price fixing

Answer 3

A practice in which competitors agree to set prices or other terms and conditions for products or services rather than letting competitors in the open market establish those prices. Price fixing occurs when competing brokers agree to set sales commissions, fees, or management rates. Real estate brokers must independently determine commission rates or fees for their own firms only.

Question 4

Group boycott

Answer 4

Occurs when two or more businesses conspire against another business or agree to withhold their patronage to reduce competition.

Question 5

Allocation of customers or markets

Answer 5

This involves an agreement between real estate brokers to divide their markets and refrain from competing for each other’s business. Allocations may be made on a geographic basic, with real estate brokers agreeing to specific territories within which they will operate exclusively. The division may also occur by markets, such as by price range or category of housing. These agreements result in reduced competition

Question 6

Tie-in agreements

Answer 6

Agreements to dell one product only if the buyer purchases another product as well. The sale of the first(desired) product is tied to the purchase of the second (often less desirable) product. This can occur if, for instance, a broker will agree to list a seller’s home for sale only if the seller agrees to be represented by the broker in the purchase of a new home.