38. Two brokers work out of the same office. One broker loves the Westside of the city but has agreed to allow the other broker to market that area while holding the Eastside exclusively. The two brokers have
Answer: C
The two brokers have not violated the antitrust laws.
The arrangement between the two brokers, where one broker specializes in the Eastside and the other in the Westside, does not infringe upon antitrust regulations. Their agreement allows for a division of territory without suppressing competition or engaging in illegal practices.
A) participated in blockbusting.
Blockbusting involves inducing property owners to sell their homes by suggesting that the demographic composition of the neighborhood is changing, leading to a decline in property values. The situation described does not involve coercion or manipulation of property sales based on demographic changes; therefore, this option is incorrect.
B) engaged in illegal price fixing.
Price fixing refers to an agreement among competitors to raise, lower, or stabilize prices. The brokers’ agreement to divide marketing territories does not involve an agreement to set prices, making this option inaccurate in the context of their arrangement.
C) not violated the antitrust laws.
The brokers’ decision to delineate their marketing areas does not constitute a violation of antitrust laws, as they are not restraining trade or limiting competition. This cooperative strategy is a legitimate practice seen in many markets, affirming that they are operating within legal boundaries.
D) boycotted any other agents in the office.
Boycotting implies an intentional exclusion or refusal to deal with other agents, which is not indicated in the scenario. The brokers are simply managing their territories, and there is no evidence of a boycott occurring, thus rendering this option incorrect.
Conclusion
The correct answer, stating that the brokers have not violated antitrust laws, is supported by their cooperative agreement to focus on different areas rather than engaging in anti-competitive practices. All other options misinterpret the nature of their arrangement, as none involve illegal activities or practices that would contravene antitrust regulations.