Illinois Leasing Agent Practice Exam

What action would violate antitrust laws for a broker?

1. Negotiating commission rates with property owners

2. Agreeing to a minimum commission with other brokers

3. Offering incentives to clients

4. Providing different commission rates based on property value

The correct answer is: Agreeing to a minimum commission with other brokers

Agreeing to a minimum commission with other brokers is a clear violation of antitrust laws because it involves price-fixing arrangements. Antitrust laws are designed to promote fair competition and prevent monopolistic practices within the market. When brokers conspire to set a minimum commission rate, they are effectively manipulating the market, eliminating competitive pricing, and potentially harming consumers by limiting their options. In contrast, negotiating commission rates with property owners is a standard practice within the industry and does not infringe on competition laws as it involves negotiations between individual parties. Similarly, offering incentives to clients and providing different commission rates based on property value are permissible strategies for attracting business and catering to diverse market needs. These actions foster competition rather than hinder it, allowing brokers to operate within the framework of the law while serving their clients effectively.