Question 52

This agreement is prohibited by antitrust laws.

Such an agreement among brokers to operate exclusively in specific market regions and charge the same commission constitutes price-fixing and market allocation, both of which are violations of antitrust laws designed to promote competition and prevent monopolistic practices.

A) acceptable with the Board of REALTORS® approval.

This option is incorrect because even with the approval of the Board of REALTORS®, such an agreement would still violate antitrust laws. Approval from a governing body does not exempt brokers from adhering to legal standards that promote fair competition.

B) acceptable provided there is disclosure under the RESPA.

This choice is also incorrect. The Real Estate Settlement Procedures Act (RESPA) focuses on transparency in real estate transactions, but it does not provide a legal basis for price-fixing or market allocation, which remain illegal regardless of disclosure.

C) prohibited by the Consumer Credit Protection Act.

This option is incorrect as well. The Consumer Credit Protection Act pertains to protecting consumers in credit transactions, not specifically addressing agreements among brokers regarding market operations or commission structures.

D) prohibited by antitrust laws.

This is the correct option. Antitrust laws are designed to prevent anti-competitive practices like price-fixing and market allocation among competitors. Such agreements undermine competition and can lead to higher prices for consumers, which is why they are prohibited.

Conclusion

The agreement among brokers to restrict their operations to specific regions and standardize commission rates is a clear violation of antitrust laws, aimed at maintaining fair competition. All other options fail to recognize the legal implications of such practices, making option D the only accurate response.