Question

Brokers in a community agreed that they would not cooperate with a broker who offered flat fees or lower rates of commissions and who wished to expand to their area. This agreement would be considered _.

Answer 1

An agreement between brokers not to cooperate with a broker who offers flat fees or lower rates of commissions and wishes to expand to their area is considered an exclusive dealing agreement, potentially illegal if it limits competition. An exclusive dealing agreement can have an anticompetitive effect on other brokers.

Step-by-step explanation:

The agreement where brokers in a community agree not to cooperate with a broker who offers flat fees or lower rates of commissions and wishes to expand to their area is considered an exclusive dealing agreement. Exclusive dealing agreements can be legal or illegal depending on their purpose. In this case, the purpose of the agreement is to limit competition, which makes it potentially illegal. Exclusive deals can have an anticompetitive effect on other brokers, limiting their ability to participate in the market.