Colibri Real Estate 30-Hour Alabama Post License Practice Exam

What laws are violated if brokers agree to charge a uniform commission on all commercial properties?

1. Contract laws

2. Real estate laws

3. Antitrust laws

4. Disclosure laws

The correct answer is: Antitrust laws

When brokers agree to charge a uniform commission on all commercial properties, this practice can violate antitrust laws. Antitrust laws are designed to promote fair competition and prevent practices that would harm consumers or other businesses by creating monopolies or reducing competition. By colluding to set a uniform commission rate, brokers effectively eliminate competition among themselves regarding pricing, which can lead to higher fees for consumers and reduced service levels. This kind of agreement can also discourage innovation and the responsiveness of the market, as brokers may not compete on aspects other than price. In contrast, contract laws typically govern agreements between parties rather than the competitive behaviors among individuals in a marketplace. Real estate laws focus on regulations specific to real estate transactions, while disclosure laws pertain to the requirement of revealing certain material facts in the sale of properties. Neither of these directly addresses the competitive implications of uniform pricing agreements among brokers like antitrust laws do.