Final answer:
One real estate professional represents current clients with opposing interests (Option C) creates a conflict of interest under common law agency but not under designated agency. Competing firms may form special interest groups to lobby for common goals, pool resources, and have a stronger influence in the government.
Step-by-step explanation:
The situation that gives rise to a conflict of interest for brokerages practicing agency under the common law but NOT for brokerages practicing designated agency is: C) One real estate professional represents current clients with opposing interests. In designated agency, the brokers within a firm can represent different clients in a transaction, allowing the brokerage to manage potential conflicts by designating different agents to each client. However, under common law agency, conflicts can arise because one agent cannot represent the interests of two clients in opposition to each other.
As to the question about special interest groups, competitors often form lobbying associations because they have common goals that can be better achieved through unified action. By working together, they can pool resources, have a stronger voice in discussion with the government, and present a united front on issues affecting their industry. Lobbying together can lead to outcomes that are beneficial for the collective industry, even though the firms are competitors in the marketplace.