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Question

A real estate broker agrees to manage a property for its owner, but only on the condition that when the owner decides to sell, he must list the property with the broker. This would be a violation of the:

Answer

The real estate broker would be breaking the Sherman Antitrust Act of 1890. Explanation: The aforementioned law is a federal regulation that disallows actions that hamper competition and interstate commerce. In this particular case, the real estate agent is contravening this law by coercing the owner to list their property solely with their brokerage. This precludes other contenders from having an equal opportunity to win the listing, signifying a breach of the Sherman Antitrust Act.