Question 46

This agreement is prohibited by antitrust laws.

The brokers' agreement to operate only in specific market regions and charge the same commission constitutes anti-competitive behavior, which is prohibited by antitrust laws. Such agreements can lead to price-fixing and limit competition, ultimately harming consumers.

A) acceptable with the Board of REALTORS® approval.

This option is incorrect because even with the Board of REALTORS® approval, an agreement that restricts competition and fixes prices among brokers is still illegal under antitrust laws. Approval from a professional organization does not exempt parties from compliance with legal regulations.

B) acceptable provided there is disclosure under the RESPA.

This option is also incorrect. The Real Estate Settlement Procedures Act (RESPA) focuses on transparency in real estate transactions rather than permitting anti-competitive agreements. The nature of the brokers' agreement violates antitrust laws regardless of any disclosures made under RESPA.

C) prohibited by the Consumer Credit Protection Act.

This option is incorrect as well. The Consumer Credit Protection Act deals primarily with consumer credit practices and does not specifically address issues related to antitrust or market competition. The brokers' agreement falls under antitrust regulations, not this act.

D) prohibited by antitrust laws.

This option is correct because antitrust laws are designed to promote competition and prevent monopolistic practices. The brokers' agreement to limit their market operations and fix prices is a clear violation of these laws.

Conclusion

The agreement among brokers is definitively prohibited by antitrust laws, as it restricts free competition and leads to price-fixing, ultimately harming consumers. Other options incorrectly suggest that such an agreement could be permissible under various regulations, which is not the case in this context.