What antitrust action is illustrated when brokerages refuse to show homes listed by a discount broker?

Prepare for the Washington Advanced Real Estate Exam. Utilize flashcards and multiple choice questions with explanations to increase your understanding and improve your chances of success. Study efficiently and excel in your exam!

The situation described involves brokerages collectively refusing to show homes that are listed by a discount broker, which falls under the definition of group boycotting. This antitrust action occurs when competing businesses agree to avoid doing business with a particular company or individual to harm their ability to operate effectively in the market.

In this scenario, by not showing homes listed by the discount broker, the traditional brokerages are attempting to undermine the business of the discount broker, possibly to eliminate competition or maintain higher commission rates. This behavior is prohibited under antitrust laws because it restricts competition and can harm consumers by limiting their choices and keeping prices artificially high.

Understanding group boycotting is crucial for real estate professionals, as engaging in such practices can lead to significant legal consequences and negatively impact the market dynamics. Awareness of fair competition principles is essential in ensuring compliance with antitrust laws.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy