Minnesota State Real Estate Practice Test

What should Susan advise her friends when discussing commission rates?

1. It's acceptable to compare rates openly

2. This may violate the Sherman Antitrust Act

3. All agents should be transparent about commissions

4. They should lower their rates

The correct answer is: This may violate the Sherman Antitrust Act

Susan should advise her friends that discussing commission rates may violate the Sherman Antitrust Act because the Act is designed to promote fair competition and prevent practices that restrain trade. When real estate agents openly compare or discuss their commission rates, it can lead to collusion or price-fixing, which is illegal under this Act. Such discussions might also have the unintended consequence of suppressing competition, as agents could feel pressured to conform to prevailing rates instead of setting their own based on service quality or market conditions. Understanding the implications of this law is crucial for real estate professionals because it underscores the importance of maintaining independent pricing strategies. Agents should focus on providing value through their services rather than becoming involved in potentially illegal discussions about commission structures. This perspective helps maintain a competitive market that benefits consumers as well.