Antitrust
Sherman Antitrust Act
The federal law prohibiting agreements that restrain trade
Passed in 1890 and applied to real estate brokerage like any other industry. Its relevance is direct: commission rates must be set independently by each firm and are always negotiable between a firm and its client, never agreed among competitors.
How the exam asks about it
Four practices carry almost every item — price fixing, market allocation, group boycotts and tie-in arrangements. Price fixing and market allocation are treated as unlawful in themselves, with no need to show anyone was harmed.
Related terms
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