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

What is the purpose of the Sherman Anti-Trust Act?

1. To regulate property markets

2. To protect competition and prevent monopolies

3. To promote fair housing

4. To govern real estate negotiations

The correct answer is: To protect competition and prevent monopolies

The Sherman Anti-Trust Act, enacted in 1890, serves the primary purpose of protecting competition and preventing monopolies in the marketplace. This legislation was designed to combat anti-competitive practices, ensuring that no single entity could dominate a particular market to the detriment of others, thus promoting fair competition among businesses. By prohibiting practices such as price-fixing, monopolization, and other forms of collusion, the Act helps maintain a marketplace where consumers have choices and businesses can compete fairly. The other options pertain to different legal aspects: regulating property markets is more aligned with real estate laws that ensure transactions are conducted transparently; promoting fair housing focuses on eliminating discrimination in housing practices; and governing real estate negotiations refers to specific licensing and ethical considerations for real estate professionals. Each of these areas is important, but they do not encapsulate the fundamental intent of the Sherman Anti-Trust Act, which is squarely about protecting competition and preventing monopolistic practices.