Question 11

This agreement is prohibited by antitrust laws.

The brokers' agreement to limit their operations to specific market regions and charge the same commission constitutes a violation of antitrust laws. Such an arrangement can reduce competition, leading to higher prices and less choice for consumers.

A) acceptable with the Board of REALTORS® approval.

This option is incorrect because even with the approval of the Board of REALTORS®, this type of agreement would still violate antitrust laws. Regulatory bodies cannot sanction practices that undermine competition in the marketplace.

B) acceptable provided there is disclosure under the RESPA.

This option is incorrect as the Real Estate Settlement Procedures Act (RESPA) does not permit agreements that restrain trade or limit competition, regardless of disclosure. Such practices are fundamentally at odds with both RESPA and antitrust regulations.

C) prohibited by the Consumer Credit Protection Act.

This choice is incorrect because the Consumer Credit Protection Act primarily focuses on consumer credit laws and does not directly address the issue of brokers' agreements regarding commission rates and market regions. Antitrust laws are the relevant legal framework for this scenario.

D) prohibited by antitrust laws.

This option is correct because agreements among brokers that restrict competition, such as dividing markets and fixing prices, are explicitly prohibited under antitrust laws. These laws are designed to promote fair competition and protect consumers from monopolistic practices.

Conclusion

The brokers' agreement to limit their market operations and set uniform commission rates directly contravenes antitrust laws, which aim to preserve competition and prevent collusion. Options A, B, and C either misinterpret the legal implications of the agreement or focus on unrelated statutes, confirming that D is the only accurate choice in this context.