What is the antitrust law in real estate?

But real-estate brokers should understand that any agreement, express or implied, with a competing brokerage to charge a certain commission, or offer the same commission splits, is a per se violation of the antitrust laws, with both criminal and civil consequences.

What was the purpose of the Sherman and Clayton Antitrust Act?

Passed in 1890, the Sherman Antitrust Act was the first major legislation passed to address oppressive business practices associated with cartels and oppressive monopolies. The Sherman Antitrust Act is a federal law prohibiting any contract, trust, or conspiracy in restraint of interstate or foreign trade.

What is boycotting in real estate?

Boycotts occur when a group of businesses agree not to do business with a particular party. A typical group boycott allegation in the real estate brokerage business involves a claim that two or more brokerages have agreed to refuse to cooperate, or to cooperate on less favorable terms, with a third brokerage company.

What is a tie in arrangement in real estate?

Tying Concerns in the Real Estate Industry. A tying arrangement is “an arrangement by a party to sell one product [the tying product] but only on the condition that the buyer also purchases a different [tied product], or at least agrees that he will not purchase that product from any other supplier.”

What is collusion in real estate?

Collusion is a non-competitive clandestine or sometimes illegal agreement between rivals that attempts to disrupt the market’s equilibrium. Collusion involves people or companies that would typically compete but who conspire to gain an unfair market advantage.

What is a tie in arrangement?

A tying arrangement is an agreement between a seller and a buyer under which the seller agrees to sell a product or service (the tying product) to the buyer only on the condition that the buyer also purchases a different (or tied) product from the seller or the buyer agrees not to purchase the tied product from any

What is a group boycott?

In competition law, a group boycott is a type of secondary boycott in which two or more competitors in a relevant market refuse to conduct business with a firm unless the firm agrees to cease doing business with an actual or potential competitor of the firms conducting the boycott.

What is a market allocation?

Market allocation or market division schemes are agreements in which competitors divide markets among themselves. In such schemes, competing firms allocate specific customers or types of customers, products, or territories among themselves.

Is market allocation illegal?

Market Division or Customer Allocation. Plain agreements among competitors to divide sales territories or assign customers are almost always illegal. These arrangements are essentially agreements not to compete: “I won’t sell in your market if you don’t sell in mine.”

What is the definition of bid rigging?

Bid rigging is a form of fraud in which a commercial contract is promised to one party even though for the sake of appearance several other parties also present a bid. This form of collusion is illegal in most countries.

What is bid suppression?

Bid Suppression. Another way companies collude to “rig” the bidding process is through what is referred to as bid suppression. This occurs when conspirators agree not to submit a bid so another can win the contract.

What is the meaning of collusive bidding?

Collusive bidding refers to agreements by contractors or suppliers in a particular trade or area to cooperate to defeat the competitive bidding process in order to inflate prices to artificially high levels. It can occur in large and small contracts.

Is price collusion illegal?

When competitors collude, prices are inflated and the customer is cheated. Price fixing, bid rigging, and other forms of collusion are illegal and are subject to criminal prosecution by the Antitrust Division of the United States Department of Justice.

What is a collusive tendering?

Definition of collusive tendering. When companies making tenders secretly share information or make arrangements among themselves in order to control the result. [

Is it illegal to price fix?

When competitors agree to restrict competition, the result is often higher prices. Accordingly, price fixing is a major concern of government antitrust enforcement. A plain agreement among competitors to fix prices is almost always illegal, whether prices are fixed at a minimum, maximum, or within some range.

Is price gouging illegal in the United States?

As of 2008, laws against price-gouging have been enacted in 35 states. Price-gouging is often defined in terms of three criteria listed below: Period of emergency: The majority of laws apply only to price shifts during a time of disaster. Price ceilings: Laws limit the maximum price that can be charged for given goods.

Why does price gouging happen?

When supply decreases, the price of the good increases. And when demand increases, again the price of the good increases. So we would predict that the market price of gas, for example, would increase in areas recently affected by a hurricane. Price-gouging occurs when companies raise prices to unfair levels.

What is a just price?

The just price is a theory of ethics in economics that attempts to set standards of fairness in transactions. With intellectual roots in ancient Greek philosophy, it was advanced by Thomas Aquinas based on an argument against usury, which in his time referred to the making of any rate of interest on loans.

Is there a law against adultery?

Yet in his state of residence, Virginia, as in 22 others including Massachusetts, adultery remains a criminal act, a vestige of the way US law has anchored legitimate sexual activity within marriage. In most of those states, including New York, adultery is a misdemeanor.

Is it illegal to price gouge in California?

Is price gouging illegal in California? Yes, in certain circumstances. California’s anti-price gouging statute, Penal Code Section 396, prohibits raising the price of many consumer goods and services by more than 10% after an emergency has been declared.

What states have laws against price gouging?

List of State Anti-Price Gouging LawsStateYearNotesAlabama1996Code of Ala. § 8-31-1 thru § 8-31-6. LINK Alabama law; Any commodity or rental facility.Arkansas1997A.C.A. § 4-88-301 – 4-88-305.California1994Cal. Pen. Code § 396.Connecticut1986Conn. Gen. Stat. § 42-230.

What is an antitrust law?

antitrust legislation. Laws passed in the United States, especially between 1890 and 1915, to prevent large business corporations, called trusts, from combining into monopolies to restrict competition. The laws were instituted to encourage free enterprise.

What is a violation of antitrust laws?

Antitrust Violations. Violations of laws designed to protect trade and commerce from abusive practices such as price-fixing, restraints, price discrimination, and monopolization. The principal federal antitrust laws are the Sherman Act (15 U.S.C. §§ 1-7) and the Clayton Act (15 U.S.C. §§ 12-27).