Illinois Leasing Agent Practice Exam

Which of the following would be a violation of antitrust laws?

1. Price-fixing agreements among brokers

2. Market division among agents

3. Cooperation with various brokerage firms

4. All of the above

The correct answer is: All of the above

Antitrust laws are designed to promote competition and prevent monopolistic practices that can harm consumers and the marketplace. A violation can occur when businesses engage in behaviors that restrict free trade and fair competition. Price-fixing agreements among brokers involve colluding to set prices at a certain level, which eliminates competition and harms consumers by preventing them from benefiting from potentially lower prices. This practice is illegal under antitrust laws because it manipulates the market rather than allowing it to operate freely. Market division among agents occurs when brokers agree to divide markets or clients amongst themselves, which can limit competition and create barriers for new entrants. This kind of behavior restricts consumer choice and can lead to higher prices, also making it a violation of antitrust principles. Cooperation with various brokerage firms, in itself, is not a violation. However, if that cooperation crosses into collusion that results in price-fixing or market division, it may also fall afoul of antitrust laws. In summary, all the outlined activities—price-fixing, market division, and improper cooperation—are practices that can violate antitrust laws, making the choice that includes all of them the correct answer.