front 1 Boycott | back 1 When individuals or business withhold their patronage to a business as a protest or to reduce competition |
front 2 Price-fixing (google definition) | back 2 The practice of setting prices for products or services, rather than letting competition in the open market establish those prices |
front 3 Antitrust laws | back 3 Laws designed to preserve the free enterprise of the open marketplace |
front 4 What does the Sherman Antitrust Act provides on the federal level | back 4 Specific penalties of a number of illegals business activities |
front 5 How many states have antitrust laws | back 5 All 50 states |
front 6 And what do these laws prohibit | back 6 They prohibit monopolies, contracts, combinations, and conspiracies among the competitors |
front 7 What is the most common antitrust violation | back 7 Price-fixing, group boycott, allocation, and tie-in agreements |
front 8 Price-fixing | back 8 Is a 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 |
front 9 When does price-fixing occur | back 9 When competitions brokers must independently determine commission rates or fees for their firms only |
front 10 What are brokers able to discuss with official realtors who work under the same building | back 10 They may discuss commissions, and fees only |
front 11 Are they able to discuss this with anyone else | back 11 NO!!! |
front 12 What can’t trade groups, multiple listing services, and other professional organizations do | back 12 Set fees, commission splits, and deny memberships |
front 13 Hinting to perspective clients that there is a”___” of commission or a “___” fee implies that rates are, in fact, standardized | back 13 Going rate; normal |
front 14 Brokers and realtors needs to tell clients that the ___ is the only thing that the brokerage charges | back 14 Rate stated |
front 15 Boycott | back 15 Occurs when 2 or more business conspire against another business or agree to withhold their patronage to reduce competition |
front 16 A group boycott | back 16 Is illegal under antitrust laws |
front 17 Example of a group boycott | back 17 Has occurred when a traditional full-service brokers have conspired to destroy a competitor’s firm by not showing that firms listing |
front 18 The competitor may be a so-called discount broker or one who offers unbundled services under the ___ | back 18 Fee-for-service concept |
front 19 Allocation of customers or markets | back 19 Involves an agreement between real estate brokers to divide their markets and refrain from competing for each other’s business |
front 20 ___ may be made on a geographic basis, with ___ agreeing to specific territories within which they will operate exclusively | back 20 Allocations; real estate brokers |
front 21 Also known as typing agreements | back 21 Tie-in agreements |
front 22 Tie-in agreements | back 22 Are agreements to sell one product only if the buyer purchases another product as well |
front 23 The sale of the first (desired) product is | back 23 Tied to the purchase of a second (less desirable) product |
front 24 Example of tie-in agreements | back 24 A broker will agree to list a seller’s home for sale only if the seller agrees to be represented by the broker in the purchase of a new home |
front 25 Penalties | back 25 Violating antitrust laws are severe |
front 26 Under the Federal Sherman Antitrust Act | back 26 The penalty for fixing prices or allocating markets is a maximum $1 million fine and 10 years in prison |
front 27 For corporations | back 27 The penalty may be as high as $100 million |
front 28 An individual who has suffered a loss because of an antitrust violation | back 28 Ma sue for treble damages — 3x the actual damages sustained |
front 29 The injured party may recover the cost of the suit | back 29 Which includes reasonable attorney fees |