Which law established the foundation for antitrust actions in the real estate industry?

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 the landmark legislation that established the foundation for antitrust actions in various industries, including real estate. Enacted in 1890, this Act was designed to combat anti-competitive practices, reduce market monopolies, and ensure fair competition.

In the context of the real estate industry, the Sherman Antitrust Act plays a crucial role in preventing practices such as price-fixing, market allocation, and other activities that can harm consumers and restrict competition among real estate professionals. Under this law, real estate associations and firms must avoid colluding to set commission rates or engaging in other practices that would unfairly limit competition.

While the other options mentioned, such as specific court cases or additional legislation like the Clayton Antitrust Act, address related issues or build upon the foundations set by the Sherman Act, it is the Sherman Antitrust Act itself that originally established the legal framework for pursuing antitrust actions. This makes it the correct answer to the question regarding the foundational law governing antitrust in real estate.

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