14. A small broker committee in the local county has set up a new marketing idea. They will give every seller the same commission rate and it will not be negotiable. This marketing plan is an example of
Answer: B
This marketing plan is an example of price-fixing.
The broker committee’s decision to implement a uniform commission rate for all sellers without allowing for negotiation exemplifies price-fixing. This practice restricts free competition by standardizing prices across the board.
A) apostille.
Apostille refers to a certification process for documents to verify their authenticity in international contexts. It does not relate to the pricing strategies employed by the broker committee, making this option incorrect.
B) price-fixing.
Price-fixing occurs when businesses agree on prices rather than letting competition determine them. In this case, the committee's approach to set a non-negotiable commission rate is a clear instance of price-fixing, as it eliminates competition among brokers regarding commission rates.
C) market allocation.
Market allocation involves agreements between competitors to divide markets among themselves, whether by geographic area or type of product. The committee's focus on standardizing commission rates does not involve allocating market segments, thus this option is incorrect.
D) consumer protection.
Consumer protection refers to laws and regulations designed to ensure the rights of consumers. While the committee’s plan may have implications for consumer choices, it does not directly relate to protecting consumers in the context of pricing, making this option incorrect.
Conclusion
The implementation of a uniform, non-negotiable commission rate by the broker committee is a definitive example of price-fixing as it eliminates competitive pricing. Other options such as apostille, market allocation, and consumer protection do not accurately describe the nature of the committee's marketing plan, reinforcing that price-fixing is the correct choice.