Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What are the five major anti-trust issues in real estate?

1. Price-fixing, Market allocation, Group boycotts, Bid-rigging, Collective activity

2. Price-fixing, Market allocation, Bid-rigging, Group boycotts, Insurance fraud

3. Market allocation, Bid-rigging, Tax evasion, Group boycotts, Price-fixing

4. Price discrimination, Bid-rigging, Market allocation, Group boycotts, Discounting

The correct answer is: Price-fixing, Market allocation, Group boycotts, Bid-rigging, Collective activity

The correct answer identifies the five major anti-trust issues in real estate as price-fixing, market allocation, group boycotts, bid-rigging, and collective activity. These issues are critical because they represent practices that can distort competition and harm consumers in the real estate market. Price-fixing refers to the agreement between competitors to set prices at a certain level, undermining free market conditions. Market allocation involves the division of markets among competitors, which restricts competition by agreeing not to compete in specific areas or services. Group boycotts occur when businesses agree not to deal with a certain competitor or group of competitors, limiting their ability to operate effectively. Bid-rigging is a collusive strategy where competitors coordinate their bidding strategies to ensure that certain parties win contracts at artificially high prices. Collective activity encompasses actions taken by groups of businesses that restrict competition, such as forming associations that collectively influence market dynamics. This answer effectively captures the essence of anti-trust violations relevant to real estate, focusing on actions that inhibit fair competition and harm consumers. Other options may mention some relevant issues but include elements such as insurance fraud or tax evasion, which are not categorized as major anti-trust issues specifically within the realm of real estate practices.