unit 3: antitrust laws Flashcards

unit 3: antitrust laws Flashcards

Agreements to establish or adhere to uniform price discounts price fixing

t/f: several brokerages can have the same commission

rates without their being a price fixing violation true Imagine you own a brokerage and have several associate brokers and salespersons within your agency. A couple of them have come to you with problems when working with buyers who have obtained pre-approval through BuyNow Mortgage. Buyer financing through this company ends up falling through nine times out of 10. You tell your agents not to accept pre-approvals through BuyNow Mortgage, and you provide a list of reputable mortgage brokers the agents can provide to buyer clients if needed.Are you violating antitrust law?no Tell a client that 120-day listings are the industry standard.not permissible Even a suggestion to another business to agree not do business with another company is crossing the line of

______

antitrust

• boost the real estate market in the area, a local real

estate investor is giving away five trips to Cancun for the top-grossing agents in the area. You and your four BFFs, who all work as agents at competing firms, decide to meet for dinner and discuss the friendly competition. You all agree that the only way to be the top grossing agents in the area is to charge the exact same amount and work your tails off. All five of you agree to double your standard commission rate and charge 6%. After all, clients will pay more if they see you working hard and providing

impeccable service: price fixing or not price fixing

price fixing two or more parties conspiring to set their prices at the same or similar leve price fixing occurs when real estate professionals from competing firms agree to divide their market and refrain from competing for business market allocation Which of the following is true of developing a market niche based on any legal category (e.g., farming or prospecting a specific area)?its permissible Tell a client that your commission rate is the standard rate at your brokerage.permissable Four real estate companies in the area produced a television commercial highlighting their mutual commission

rate of 6%, which is slightly higher than the standard market rate. The commercial didn't offer a comparison of

other firms' rates in the area: price fixing or not price fixing

price fixing

Agreements not to advertise prices or to refuse to sell the product through any bidding process price fixing Dodgers Realty offers most cooperating agents a commission of 2.5%. However, they only offer a

commission of 2% to Scarlet Agents: price fixing or not

price fixing not price fixing Convince other agents in the area not to use a specific printer for their marketing materials.not permissable Agreements on terms and conditions of sale, including uniform freight charges, quantity discounts, or other differentials that affect the actual price of the product price fixing The agents with Maize Realty and Sparta Homes agree to refuse to show their clients any properties listed with

Scarlet Group: group boycotting or not group boycotting

group boycotting What are the possible penalties that may be imposed on antitrust law violators? 4 things 1) prison time2) fines3) restitution to the victims4) monetary damages While networking at a real estate industry event, agents from several firms agree to start writing listing contracts for

terms of three months: price fixing or not price fixing

price fixing when two or more firms agree to offer exactly the same terms in their agency agreements.price fixing Imagine you're the sponsoring broker for a new licensee.She's preparing for her first listing appointment and is a bit nervous. You help her prepare by pretending to be the seller as she goes through her listing presentation. She's at a point where she discusses commission. Because this often happens working with sellers, you interrupt her, and state that the commission she quoted is way too high. She replies that the rate is fairly standard in the industry. Is this a good response?no it suggests a standard commission rate If your brokerage is found guilty of violating antitrust laws, it may be subject to court-ordered supervision for up to ____ years 10 what's an example of group boycotting in real estate?when two or more brokers or agents refuse to cooperate and split commissions with one another Your problems with BuyNow Mortgage continue. As a brokerage owner, you make sure that your associate brokers and salespersons continue not to use the company, but now the BuyNow owner is angry. So you call up the other brokerage owners in your area, and all seven of you decide that you won't use BuyNow Mortgage's services.Are you violating antitrust law?yes local agents agree not to show listings of a new limited

service firm: group boycotting or not group boycotting

group boycotting

An agent agrees to work with a client, but only if the client agrees to not do business with Peak Mortgage.tie in arrangement penalty for individual who violates antitrust lawsfines up 1 million and prison terms up to 10 years Which of the following is true of the practice of basing the length of a listing term on how long it takes in your market to sell similar properties?its permissible Instead of competing in each other's territories, agents in two brokerage firms agree to segment the marketplace and refer clients to one another who are outside of their assigned market area.market allocation An agent tells a client that if the client chooses to finance his mortgage through Alamo Bank & Trust, she will take 1% off of her commission rate.tie in arrangement Penalty for a corporation who violates antitrust lawsfines as high as 100 million and prison terms up to 10 years One of the things you enjoy about being a sponsoring broker is watching the licensees associated with your firm learn, grow, and become successful in the industry. After mentoring a licensee for many years, you learn he's ready to spread his wings and open his own brokerage. However, not wanting to "step on your toes," he decides to locate his brokerage in a neighboring town so he won't compete directly with you on as many properties. Is this an antitrust violation?no Agreements to eliminate discounts to all customers or certain types of customers price fixing The common term to explain the complexities of property ownership rights, and helps to explain how a property can be "owned" by multiple parties at the same time bundle of rights Your resource describes tie-in arrangements that may be seen in the real estate industry. What is a tie-in arrangement?Providing service only if the client agrees to use a service offered by another company Royal Realty and Angels Properties agree to charge

commissions of 6%: price fixing or not price fixing

price fixing involves two or more businesses conspiring against

another:

group boycotting All agents with Rangers Realty charge a 4% commission

split evenly with the cooperating agent: price fixing or not

price fixing not price fixing Agreements to adopt a specific formula for the computation of selling prices price fixing Which of the following is an example of a tie-in arrangement?a business requires its clients to also purchase service restitution =compensation for injury or loss