Maryland Home Improvement PSI Practice Exam

What should Susan do when discussing commission rates with other agents?

1. Excuse herself from the discussion as this could constitute illegal blockbusting.

2. Advise her friends this could constitute a violation of Sherman Antitrust Act.

3. Listen carefully so she can be more competitive in the market.

4. Be certain her company is charging as much as the others.

The correct answer is: Advise her friends this could constitute a violation of Sherman Antitrust Act.

In the context of discussing commission rates among real estate agents, it's crucial to recognize the legal implications tied to such discussions, particularly under the Sherman Antitrust Act. When agents communicate about commission rates, it can be perceived as price-fixing, which is illegal and could lead to significant penalties for those involved. By advising her friends that the conversation may violate the Sherman Antitrust Act, Susan is demonstrating a clear understanding of the legal boundaries that govern real estate practices. This awareness not only safeguards her against potential legal issues but also promotes ethical conduct in the industry. Recognizing that discussing and coordinating commission rates could result in serious legal repercussions is essential for maintaining fair competition and avoiding practices that might harm consumers or other agents. Other options could misrepresent the seriousness of the situation or distract from the critical nature of adhering to legal standards in real estate transactions. It is imperative for agents to act in a way that upholds the integrity of the market, and acknowledging the potential consequences of discussing commission rates is a vital aspect of that responsibility.