11. During a broker meeting, a broker states that a competitor is NOT charging enough commission. The other brokers should
Answer: C
Other brokers should remove themselves from the meeting.
In this situation, the appropriate action for the other brokers is to remove themselves from the meeting. By doing so, they avoid any potential collusion or unethical discussions regarding the competitor's commission rates.
A) vote on a new fee.
Voting on a new fee is not appropriate in this context. This action could imply that the brokers are engaging in price-fixing, which is illegal and unethical within competitive markets.
B) reduce their fees.
While reducing fees might seem like a competitive strategy, doing so in response to a competitor's pricing would unnecessarily harm their own business. It may also reflect collusion, which is against fair competition practices.
C) remove themselves from the meeting.
Removing themselves from the meeting is the correct action as it allows the brokers to distance themselves from any unethical discussions or agreements regarding pricing. This step maintains their integrity and compliance with industry regulations.
D) not show the competitor's listing.
Choosing not to show the competitor's listing is not a viable or ethical option. This could be interpreted as an attempt to undermine competition, which goes against fair market principles and could lead to legal repercussions.
Conclusion
The decision for brokers to remove themselves from the meeting is essential to uphold ethical standards in the industry. All other options present risks of collusion or undermining competitive practices, which could have serious legal implications. Therefore, maintaining professional integrity by exiting the meeting is the most appropriate response.