National Real Estate Practice Exam

Which of the following is a violation of the Sherman Antitrust Act?

1. Offering discounts to bulk buyers

2. Price fixing

3. Providing free appraisals

4. Rental property advertisements

The correct answer is: Price fixing

The Sherman Antitrust Act is a fundamental piece of United States legislation aimed at promoting fair competition for the benefit of consumers. Price fixing falls squarely within the violations outlined by this act. It occurs when businesses agree to set prices at a certain level, rather than allowing the market to dictate prices through competition. This collusion restricts market competition and can lead to consumers paying artificially high prices. Offering discounts to bulk buyers is generally a standard marketing practice and does not inherently violate antitrust laws. Providing free appraisals can be a promotional tool that encourages business and does not involve collusion or anti-competitive behavior. Rental property advertisements are a common marketing strategy in real estate and, unless they involve deceptive practices or collusion, do not violate the Sherman Antitrust Act. Therefore, the act of price fixing is particularly harmful as it undermines fair market competition, making it a clear violation of the Sherman Antitrust Act.