Antitrust laws: real estate industry is subject to antitrust laws

Antitrust laws: real estate industry is subject to antitrust laws

Flashcards Sherman Antitrust ActAt the federal level, it provides specific penalties for a number of illegal business activities.Penalties for violating antitrust lawsIndividuals: A maximum $1 million fine and 10 years in

prisonCorporations: subject up to 100 million in penalties.

Tie -in agreementsAlso known as tying agreements. Agreements to sell one product only if the buyer purchases another product as well the sale of the first product tied to the purchase of a second product.Group boycottingOccurs when two or more businesses conspire against another business or agree to withhold their patronage to reduce competition. A group boycott is a legal under antitrust laws.Price fixingA practice in which competitors agree to set prices or other terms and conditions for products or services rather than letting competition in the open market establish those prices Rights must be independently determined by broker for his firm based on brokers business judgment and revenue requirements must avoid the impression that rates are standard Allocation of customers or marketsInvolves and 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 basis with real estate brokers agreeing to specific territories within which they will operate exclusively.