Which action is NOT considered an illegal per se violation of the Sherman Antitrust Act?

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 Sherman Antitrust Act is a federal statute that aims to protect competition by prohibiting certain anti-competitive practices. Actions such as price fixing, tying arrangements, and group boycotts are classified as illegal per se because they are inherently harmful to competition. This means that these actions are considered illegal without the need for further investigation into their actual effects on the market or competition.

Price fixing involves agreements between competitors to set prices at a certain level, which restricts free market pricing and competition. Tying arrangements require the purchase of one product to be linked to the purchase of another, which can limit consumer choices and competition. Group boycotts occur when businesses agree to exclude a competitor from the market, directly harming competition.

On the other hand, redlining refers to the practice of denying services, usually financial, to residents of certain areas based on their racial or ethnic composition, rather than on the creditworthiness of individual borrowers. While redlining is illegal under other laws—specifically due to discriminatory practices in housing and lending—it is not classified as an illegal per se violation of the Sherman Antitrust Act. Therefore, it does not fall under the same category of harmful actions that automatically violate antitrust laws.

Understanding these distinctions is crucial for real estate

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