ReU3ch17

What is the purpose of antitrust laws?

Early in the history of big business, why did competing businesses coordinate prices?

What led to the public's intent to control big business and monopolistic practices?

What’s the penalty for violating the Sherman Antitrust Act?

What does the Clayton Act allow private individuals to do?

What did the ACPERA do in regard to the Sherman Antitrust Act?

What has not been addressed in any amendments to ACPERA?

What is market allocation? Give an example.

Which is considered to be paramount among the offenses that antitrust laws prohibit and why?

What kinds of discussions about commission rates are brokers allowed to have that would not violate the Sherman Act?

Broker Jed tells buyer Sam that when he signs his purchase agreement he must also purchase a subscription to Jed’s monthly newsletter. What would you say about this?

What are the three parameters that apply to a violation of an antitrust law?

What are the three actions of brokers that the courts have found that violate antitrust laws?

What do the rules of the CAN-SPAM Act exclude?

What is the penalty for violating the CAN-SPAM Act?

What is the Telephone Consumer Protection Act otherwise known as and what does it address?

What are three exceptions to the TCPA?

What is the penalty for violating the Junk Fax Prevention Act and what is the only defense for doing so?

What does the FACTA allow consumers to do, and what provisions does it contain to reduce identity theft?

The Sherman Antitrust Act of 1890 is the principal federal statute that covers____ and is one of the most important pieces of antitrust legislation.

The____ _____ Act prohibits restraint of interstate and foreign trade by conspiracy, monopolistic practice, and certain forms of business combinations, or mergers.

Individual violators of the Sherman Act can be fined up to $_______and sentenced to up to __ years in federal prison for each offense; corporations can be fined up to $__million for each offense

The Clayton Antitrust Act of 1914 was designed to cover restraints on interstate trade or commerce that are not covered under the Sherman Act. Under the Clayton Act, private individuals are permitted to sue antitrust violators. If the suits are successful, the individuals can recover____ times the damages incurred plus court costs and attorneys’ fees.

The ____ ____ _____also has the power to judge whether particular trade practices are unfair. It can enforce compliance with the Sherman Act and some sections of the Clayton Act.

The Criminal Antitrust Penalty Enhancement and Reform Act (ACPERA)
From a criminal standpoint, the statute increased the maximum fine for corporations from $10 million to $___million, increased the maximum prison sentence from 3 years to__ years, and increased maximum individual fines from $350,000 to $__million.

The statute also created a significant civil benefit for amnesty applicants. It offered financial incentives for informers—including de-trebling civil damages for cooperating corporations involved in cartel conduct.

is the illegal practice of two or more businesses joining forces or making joint decisions which have the effect of putting another business at a competitive disadvantage.

Classic or “Type__” collusion involves firms colluding in order to mimic the actions of a monopoly. The monopoly outcome arises as the cartel members agree either to restrict output, to raise prices, or to divide markets.
Type__ collusion consists of agreements to take action jointly to harm rivals that are not party to the collusion. It involves firms colluding to disadvantage rivals in a manner that causes the rivals’ output to diminish or causes their behavior to become chastened. Type II collusion in turn allows the colluding firms to raise prices.

is the practice of two or more brokers agreeing to charge certain commission rates or fees for their services, regardless of market conditions or competitors.

___ ___is the practice of colluding to restrict competitive activity in portions of a market in exchange for a reciprocal restriction from a competitor.

Price ranges
Types of properties
Sociological divisions of business
Refusal to deal with a competitor

are agreements between or among members of a particular trade that would prevent other members from fair participation in the trade's activities.

is an arrangement that requires a buyer to purchase additional or unrelated products or services when making a product purchase or that requires the buyer to agree to something in exchange for the sale.

Antitrust Lawsuits

Violations of antitrust laws occur when brokers:3

CAN-SPAM Act establishes the United States' first national standards for the sending of commercial e-mail and requires the___ ___ ___ to enforce its provisions.

Any person found guilty of violating the CAN-SPAM Act is subject to a fine of up to $_____per violation.

The Telephone Consumer Protection Act, also known as the___ ___ ___ ___, addresses the regulation of unsolicited telemarketing phone calls. In the event of a violation of the TCPA, a subscriber may sue for up to $_____for each violation or to recover actual monetary loss, whichever is higher. In addition, the subscriber may seek an injunction.

Do-Not-Call Exceptions3

Junk Fax Prevention Act dealt broadly with larger issues of nuisance telemarketing tactics, it included provisions making it illegal for any person to send an unsolicited advertisement to a fax machine.

Do-not-fax: Unsolicited fax senders must cease such a practice upon request by the recipient.
Opt-out provisions: Senders must provide notice and contact information allowing the recipient to opt out of future transmissions within __ days.
Allows unsolicited faxes to be sent to individuals and businesses having an established business relationship

Even if one sends an unsolicited advertisement by fax by accident, minimum liability of $___per page attaches. The only real defense for the sender is that the transmission was protected by the EBR exception.

Fair and Accurate Credit Transactions Act regulates confidential consumer credit information. The act allows consumers to request and obtain a free credit report once every___ months from each of the three nationwide consumer credit reporting companies.

Identity Theft Prevention and Credit History Restoration act contains provisions that deal mainly with the prevention of___ ___ and establishes new regulations concerning fraud alerts and active duty alerts, establishes new limitations on the printing of customers' credit card numbers on receipts, and prescribes that new regulations be established by certain government agencies regarding the detection of identity theft by financial institutions and creditors.

Agent Jim wants to send out a e-mail to all the local real estate agents to inform them about an open house he is holding. What must he do to be in compliance with the CAN-SPAM Act?

Jim must give the agents a way to opt out of any future e-mail messages.
He must be sure to include the entire mailing address of the home he is hosting.
Jim must be sure his name and phone number are prominently displayed in the e-mail.
He cannot give any indication of the listing price of the home in the e-mail.

One broker says to another "I'll take the east side of town and your company can take the west side." What is this an example of?
Price fixing
Group boycott
Tie-in arrangement
Market allocation

Two brokers are discussing how the commission would be split between the listing broker and the selling broker in a cooperative transaction. They are guilty of
price fixing.
collusion.
market allocation.
nothing.

Business practices and behaviors that violate antitrust laws include
discounts.
coupons.
cooperation between two businesses.
market allocation.

“Everyone charges the same so you might as well list with me” is an example of what?
Price fixing
Boycott
Market allocation
Collusion

How does FACTA help reduce identity theft?
By reporting suspected incidents to the FTC
By providing credit reports to consumers as often as needed
By allowing individuals to place alerts on their credit histories
By allowing military personnel who are deploying to freeze their credit activity

In regard to antitrust laws, some states require licensees to inform clients that commission rates are
set by the managing broker.
federally mandated to avoid price fixing.
negotiable.
the same from one brokerage to another.

Calinda and Judith are brokers in the same firm. They have decided not to do business with Broker Michelle from another firm and have told Broker Bob about their decision. Broker Bob works for a third firm.
Calinda and Judith are guilty of group boycotting and have violated antitrust laws.
Because Calinda and Judith work for the same firm, they are not considered a group so they have not violated antittrust laws.
If Bob doesn't agree to join Calinda and Judith in their decision not to do business with Michelle, there is no group boycott.
Bob could file suit against Calinda and Judith for trying to bring him into a group boycott against Michelle.

How were penalties under the Sherman Antitrust Act increased?
An amendment to the Sherman Act in 1930 increased the penalties.
The Clayton Antitrust Act included provisions for increasing the penalties.
Congress increased the penalties in 2010.
The establishment of ACPERA increased the penalties.

Brokers selling their own property through the brokerage must disclose the brokerage identity is an example of which type of marketing regulation?
Junk Faxes
Advertising
CAN-SPAM
TCPA

What would be considered an advertising violation according to state laws and regulations?
Advertising that is not misleading.
Brokers and agents that use blind ads.
The broker is responsible for the content of advertising done by agents and assuring compliance.
Brokers selling their own property through the brokerage always disclosing the brokerage identity.

Under ACPERA, an informant might reduce its damages and avoid liability if it demonstrates what?
Remorse
Compensation
Satisfactory cooperation
Restraint

Prior to the ACPERA, violations of the Sherman Anti-Trust Act could include prison terms and fines of up to how much per violation?
$50,000
$150,000
$250,000
$350,000

Courts have found that violations of antitrust laws do not occur when brokers
charge net commissions.
share commissions with brokers who have not provided services in the sale or listing of a property.
real estate boards directly or indirectly influence commission rates.
share commission with unlicensed companies.

Which of the following is a rule of the federal Do-Not-Call List?
Every state must have its own list.
Only telemarketers are bound by this law.
Consumers must update their information on the registry at least every two years.
The law prohibits unsolicited phone calls to any consumer telephone number listed on the registry.