Final answer:
Shane's attempt to persuade a seller to terminate an existing agency agreement with another agent to sign with him instead raises legal and ethical issues, and is usually considered unethical and potentially illegal depending on the laws and ethical codes in real estate.
Step-by-step explanation:
The scenario presented involves an agent, Shane, attempting to persuade a seller to terminate their existing listing agreement with another agent, which raises legal and ethical considerations. To determine whether Shane's actions are legal or not, one needs to look into the laws governing real estate in the applicable jurisdiction, as well as the ethical guidelines set by real estate regulatory bodies. Generally, it is considered unethical and potentially illegal for an agent to try to interfere with an exclusive agency agreement that is already in place between a seller and another agent. Such conduct could be seen as an attempt to limit competition unethically and can lead to sanctions against the agent if it breaches the terms of the existing contract or code of ethics in the industry. Examples of an exclusive dealing agreement, such as manufacturers selling to specific dealers, serve to illustrate how exclusive agreements can sometimes encourage but also limit competition depending on the context. In Shane's case, the attempt to convince the seller to break their existing contract does not promote fair competition and could be deemed prohibited practices.