What does antitrust law prohibit competing brokers from doing?

Study for the Pennsylvania Real Estate Salesperson Exam. Utilize flashcards and tackle multiple choice questions, each with hints and explanations. Prepare effectively for your certification!

Antitrust law is designed to promote fair competition and prevent monopolistic practices within various industries, including real estate. One key aspect of antitrust law is that it prohibits competing brokers from colluding or conspiring to fix prices, which can include setting commission rates.

Receiving compensation from both the buyer and the seller is typically not prohibited by antitrust law in itself. However, if brokers were to agree on specific commission rates they would charge to both parties, it could be considered price-fixing, which is forbidden. The law aims to ensure that brokers operate independently in setting their fees, allowing market forces to dictate appropriate compensation rather than artificially inflating rates through collusion.

The other options involve practices that are generally acceptable within the framework of antitrust laws, provided they do not violate specific competitive practices. Discussing commission rates in a competitive context can happen legally, exclusive partnerships can be formed as long as they do not reduce competition, and general advertising of properties does not necessitate collaboration among brokers.

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