Question 75

The action violates the Sherman Anti-trust Act.

This decision by the MLS board members restricts competition among brokerages by limiting where they can operate, which is a violation of the Sherman Anti-trust Act. This act is designed to promote fair competition and prevent monopolistic practices in the marketplace.

A) Civil Rights Act

The Civil Rights Act primarily addresses discrimination in housing and employment based on race, color, religion, sex, or national origin. While important for protecting individuals' rights, it does not pertain to limitations on business operations or competition among brokerages.

B) Diversity Jurisdiction

Diversity jurisdiction refers to the ability of federal courts to hear cases where the parties are from different states, primarily related to civil cases. This legal concept does not relate to real estate practices or the restrictions imposed by the MLS board on brokerages.

C) Sherman Anti-trust Act

The Sherman Anti-trust Act prohibits monopolistic behavior and promotes competition in the marketplace. By restricting brokerages to listing properties only in certain districts where they have offices, the MLS board's decision undermines competitive practices, making this option the correct answer.

D) Housing and Community Development Act of 1974

The Housing and Community Development Act of 1974 focuses on improving housing and community development programs. It does not address issues related to anti-competitive practices among real estate brokerages, making it irrelevant to the MLS board's decision.

Conclusion

The violation of the Sherman Anti-trust Act is evident, as the MLS board's decision restricts competition and could lead to monopolistic practices. In contrast, the other options either address different legal issues or do not pertain to the competitive nature of real estate listings. Therefore, the Sherman Anti-trust Act is the relevant law that has been violated in this scenario.