Florida Real Estate Broker ExaminationReal Estate Brokerage ManagementHard
A real estate broker is involved in an antitrust lawsuit alleging price-fixing with other local brokers. Which of the following activities, if proven, would constitute a per se violation of antitrust laws?
- AAgreeing with competing brokers to set a standard commission rate for all listings.
- BRefusing to cooperate with a broker from another firm who has a history of unethical behavior.
- CRecommending a specific lender to all buyers, regardless of their financial situation.
- DDiscussing commission rates with a sales associate from another brokerage at a social event.
Show answer & explanationAnswer & explanation
Correct answer: A. Agreeing with competing brokers to set a standard commission rate for all listings.
Price-fixing, which includes agreements among competitors to set commission rates, is a per se violation of antitrust laws. This means the act itself is illegal, regardless of intent or whether harm actually occurred. It is a direct restraint on competition.
Why the other options are wrong
- B. Refusing to cooperate with unethical brokers is generally permissible and a professional responsibility, not an antitrust violation.
- C. This could be a steering issue or a conflict of interest, but not a per se antitrust violation like price-fixing.
- D. Discussions, while potentially problematic, are not a per se violation without an agreement to fix prices.
Antitrust Per Se Violations
Certain actions, such as price-fixing, market allocation, and group boycotts, are considered so inherently anticompetitive that they are illegal 'per se' under antitrust laws, meaning no defense or justification is allowed.
- Illegal regardless of intent or outcome.
- Includes price-fixing, market allocation, group boycotts.
- Can result in severe penalties.
Memory trick: Don't fix prices, divide markets, or boycott; these are 'per se' forbidden, like touching a hot stove.