a standard commission for the industry?a. Its an example

section 11 unit 5: Antitrust Violations and Penalties Flashcards

Which of the following is true about discussing or implying a standard commission for the industry?a. It's an example of a tie-in arrangement and is an antitrust violation.b. It's an example of market allocation and is an antitrust violation.c.It's an example of price fixing and is an antitrust violation.d.it's permissible

• It's an example of price fixing and is an antitrust violation.

Deb, a licensee, is unhappy with the marketing materials a local company produced. While having coffee with Irving, a licensee with another firm, she tells him about her troubles and recommends he not do business with this company.Irving agrees and even volunteers to spread the word among his colleagues. What's this an example of?a. a tie-in arrangementb. group boycottingc. market allocationd. price fixing

• group boycotting

group boycottingLocal licensees agree not to show listings from a new limited service firm.a. yesb. no

• yes

An agent has a client who would like to purchase a home in a neighboring county. Unfamiliar with the area, the agent refers the buyer to another agent with the firm who is more knowledgeable.a. market allocationb. not market allocation

• not market allocation

Which of the following is true of discussing the business model of competitor A with competitor B in order to determine a joint course of action against competitor A?a.It's an example of a tie-in arrangement and an antitrust violation.b. It's an example of group boycotting and an antitrust violation.c. its and example of price fixing and an antitrust violationd. it's permissible It's an example of group boycotting and an antitrust violation.Which of the following is the best example of a tie-in arrangement?a. A business offers add-on services for its best customers.b. A business requires its clients to also purchase services from another business.c. Competing businesses agree to similar pricing strategies.d. Competing companies agree to not do business with a third.

• A business requires its clients to also purchase services

from another business.Which of the following is true about tie-in arrangements?a.they involve market allocationb. They involve price fixing.c.they're an antitrust violationd. They're a type of mortgage fraud.

• they're an antitrust violation

Two competing firms are found guilty of illegal market allocation. Which of the following scenarios must be true?a.The two firms are located in different parts of the state.b.The two firms are owned by the same umbrella company.c.

The two firms have agreed not to compete in one another's markets.d. The two firms have agreed to set commission rates and/or co-op fees at a specific amount.

• The two firms have agreed not to compete in one

another's markets.Susan agrees to work with a client, but only if he agrees not to do business with Peak Mortgage.a. tie-inb. not a

tie-in

• tie-in

Which of the following statements could indicate a price fixing violation?a. "I base my price on my services."b. "My price is non-negotiable."c. "This is the price my brokerage requires me to charge."d. "This is the standard price for a full-service listing."

• "This is the standard price for a full-service listing."

Tell a client that 120-day listings are the industry standard.a. permissableb. not permissable

• not permissable

In certain cases, antitrust violators may be subject to court-ordered supervision. How long can this supervision last?a. 10 yearsb. one monthc. one weekd. one year

• 10 years

All licensees with Max Realty charge a 4% commission split evenly with the cooperating licensee.a. price fixingb.not price fixing

• not price fixingAll licensees within a single firm charging

the same commission isn't an example of price fixing since the agreement isn't between competitors.Shakira is attending an association meeting when, in a small group breakout, her group begins discussing how to

deal with the new kid in town: a real estate firm that

charges a flat $500 to list properties, then lets the sellers fend for themselves. Shakira should leave the discussion because _______.a. She needs to get to work developing this model for herselfb. The group seems bent on creating a tie-in arrangementc. This conversation seems to be turning into a discussion of market allocationd. This conversation sounds like it might become an antitrust violation

• This conversation sounds like it might become an

antitrust violation A licensee is trying to drum up business for a friend's mortgage company. She offers to discount her commission rate if her clients use her friend's mortgage company for their financing. What is this an example of?a. group boycottingb. market allocationc. price fixingd. Tie-in arrangement

• Tie-in arrangement

Which of the following statements could indicate a price fixing violation?a. "My contract length is non-negotiable."b."My listing agreements are generally 90-day contracts."c."The MLS requires us to have at least 90-day listings."d."With today's market conditions, we could expect the house to take two months to sell. Let's set a term of four months for our listing contract."

• "The MLS requires us to have at least 90-day listings."

Which of the following is a possible outcome if a brokerage is found guilty of violating antitrust law?a. The brokerage may be required to place 10% of its profits in the Sherman Act Foundation for a period of three years.b. The brokerage may have to sell its assets to its nearest competitor at below-market rates.c. The brokerage may have to undergo court-ordered supervision for up to 10 years.d. The brokerage's listing fees may be limited to 80% of its former