Illinois Real Estate Practice Exam

Which of the following actions are prohibited by the Antitrust Laws for real estate offices?

1. Agreeing to standard commission rates

2. Agreeing to share market territories

3. Agreeing to price-fixing strategies

4. Agreeing to collaborate on community events

The correct answer is: Agreeing to price-fixing strategies

Antitrust Laws are designed to promote competition and prevent monopolistic practices in the marketplace. Among the actions prohibited by these laws, price-fixing strategies stand out as a significant violation. When real estate offices agree on commission rates or pricing strategies, they effectively eliminate competition among agents and brokers, which can lead to inflated costs for consumers and a lack of options in the market. This behavior undermines the fundamental principles of a free market, where prices should be determined by supply and demand rather than collusion among competitors. The prohibition on price-fixing ensures that real estate professionals cannot coordinate to set prices, which promotes fair competition and allows consumers to benefit from competitive pricing. In contrast, actions such as collaborating on community events may be permissible as they do not directly interfere with market competition or pricing structures.