You asked: What is an example of group boycotting in real estate?

Group boycotting is also illegal under the antitrust laws. This means that two or more brokers cannot conspire against another business, or agree to withhold their patronage to reduce competition. … For example, a real estate broker owns 10 acres of vacant land.

What are group boycotts in real estate?

The typical group boycott allegation in the real estate brokerage business involves a claim that two or more real estate firms have agreed to refuse to cooperate, or to cooperate on less favorable terms, with a third firm.

What is an illegal group boycott?

Any company may, on its own, refuse to do business with another firm, but an agreement among competitors not to do business with targeted individuals or businesses may be an illegal boycott, especially if the group of competitors working together has market power.

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What are two common examples of behavior that can lead to antitrust liability for real estate professionals?

Here are five antitrust issues that real-estate professionals should understand:

  • Price-fixing is a per se antitrust violation. …
  • Market or customer-allocation is a per se antitrust violation. …
  • Bid-Rigging is a per se antitrust violation. …
  • Group Boycotts are per se antitrust violations.

What is an example of price-fixing in real estate?


For example, if you and your neighbor both sell apples, the two of you can’t get together and decide that you’re both going to charge the same price for an apple. In the real estate industry, antitrust laws go a step further.

Is group boycotting an antitrust violation?

Under certain circumstances, a group boycott constitutes an antitrust offense and is condemned under a modified per se rule as a violation of Section 1 of the Sherman Act and California’s Cartwright Act.

Which of these is an example of antitrust violations common to real estate quizlet?

Which of these is an example of antitrust violations common to real estate? In addition to price fixing, antitrust violations include tie-in arrangements, market allocation agreements, and group boycotting.

What does boycotting mean in real estate?

Group Boycotts

In a group boycott, real estate agents decide to avoid certain types of customers or refuse to work with a certain broker.

What is a vertical group boycott?

In essence, a group boycott is a commercially motivated action that a set of entities takes against their competitors, customers, or suppliers. The offending parties are often competitors, but may include a group of competitors and one or more entities that are vertical to competitors—typically customers or suppliers.

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Is boycotting illegal?

Boycotts are legal under common law. The right to engage in commerce, social intercourse, and friendship includes the implied right not to engage in commerce, social intercourse, and friendship. Since a boycott is voluntary and nonviolent, the law cannot stop it.

What is considered an antitrust violation in real estate?

This means that competing brokers, real estate governing bodies, or multiple listing organizations cannot agree to set sale conditions, fees, or management rates. Group boycotting is also illegal under the antitrust laws.

What are antitrust issues?

Antitrust laws are statutes developed by governments to protect consumers from predatory business practices and ensure fair competition. Antitrust laws are applied to a wide range of questionable business activities, including market allocation, bid rigging, price fixing, and monopolies.

How can an estate avoid antitrust violations?

Guidelines and hints

  1. Don’t discuss pricing with competitors. …
  2. Don’t discuss dividing or allocating customers, markets or territories with a competitor.
  3. Don’t restrict the resale activity of a customer or attempt to control the customer’s resale price.

What are examples of price discrimination?

Examples of price discrimination include issuing coupons, applying specific discounts (e.g., age discounts), and creating loyalty programs. One example of price discrimination can be seen in the airline industry.

What is price fixing discuss other recent examples of price fixing?

This involves an agreement by competitors to set a minimum or maximum price for their products. For example, electronics retail companies may collectively fix the price of televisions by setting a price premium or discount.

Which document is the most important at closing?

The most important originals are the purchase agreement, deed, and deed of trust or mortgage. In the event originals are destroyed, you might be able to get certified copies of these documents from the lender or closing company, but you don’t want to rely on others’ recordkeeping systems unless you have to.

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