MA CEU - Antitrust
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Antitrust Competition and Cooperation RE11RC01
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Massachusetts Continuing Education Course – 2 Credits. This course will review the purpose of the Anti-trust laws which is to promote competition in the marketplace. Competition benefits consumers by keeping prices low and the quality of goods and services high. We will also review the practices and procedures that can put a real estate agent at risk for violating these laws.
Transcript of MA CEU - Antitrust
AntitrustCompetition and Cooperation
RE11RC01
Competitive Acts Creates Innovation
Cooperative Acts Creates Monopoly
vs.
The Laws
• Sherman Act - 1890– “Every contract, combination in the form of
trust or conspiracy in restraint of trade …. is hereby declared illegal”
• Clayton Act - 1914 – Outlaws business mergers that result in a non-
competitive atmosphere. Activities that may affect future restraint of trade are regulated under this act.
The Laws
• Robinson - Patman Act 1936– Deals with price discrimination among
customers of the same class.• Federal Trade Commission Act of 1914
– Deals with unfair and deceptive business practices or unfair competition. May be used before someone is harmed.
The Laws
• Scott-Hart-Rodino Act– Prior notification of large mergers must be
given to the FTC and Justice Department• Parens Patriae
– Attorney General given the full strength of federal antitrust powers.
• M.G.L. 93 Section 1-14A– Massachusetts Antitrust Act
Per Se Rule:
Actions that are so inherently anti-competitive that anti-competitive effect on trade are presumedwithout need for the plaintiff to introduce evidenceon restraint or impact of trade
Per Se Violations
• Agreement to boycott competition
• Agreement to fix prices:
• Allocation of markets
• Tying
Rule of Reason:
Plaintiff may introduce evidence that restraint or impact was an unreasonable condition (restraint of trade).
Rule of Reason Violation
• Customer/client– Establishing commission rate– Other listing policies– Length of listing– Type of listing
Rule of Reason Violation
• Competitors– Commission splits– Boycotts– Horizontal mergers and agreements
• Other service providers– Tying arrangements– Vertical mergers and agreements
The Penalties
• State & Federal Fines– ranging from $25,000 - $100,000
• Prison Terms– ranging from 1-3 years
• Supervision of your business.
The Penalties
• Civil – treble damages– payment of plaintiffs’ attorneys fees.
• Loss of license.
Jody O’BrienThe RE/Education Company
Committed to Professionalism in Real Estate through Education
Blogwww.reeducator.wordpress.comPresentationwww.slideshare.net/ReEducationCompanySocial Mediawww.twitter.com/reeducatorwww.youtube.com/msreeducatorwww.facebook.com/reeducatorwww.linkedin.com/in/reeductor
Thank you for Attending
