Antitrust Laws: State and federal laws designed to maintain and preserve business competition. The Sherman Antitrust Act (1890) is the principal federal statute covering competition, which is defined by most courts as that economic condition in which prices are determined by market forces without interference from private concerns and there is reasonable freedom of entry into most businesses. Certain real estate brokerage activities have come under public scrutiny by the Federal Trade Commission. These activities include the fixing of general commission rates by local boards or groups of brokers and the exclusion of brokers from membership in local boards or in multiple-listing arrangements due to unreasonable membership requirements. As a result of court cases, local real estate boards no longer directly or indirectly influence fixed commission rates or commission splits between cooperating brokers. Moreover, in some states, clients must be specifically informed that the commission rates are negotiable between client and broker.

 

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Antitrust Laws: Legislation designed to protect commerce from unlawful restraint of trade, price discrimination, price fixing, reduced competition, and monopolies. See also Sherman Antitrust Act, Clayton Ac . . . View Full Definition

Sherman Antitrust Act: A federal act which established as national policy the concept of a competitive marketing system by prohibiting companies from attempting to (1) monopolize any part of trade or commerce or ( . . . View Full Definition

Right-To-Farm Laws (Nuisance): Right to farm laws deny nuisance suits against farmers who use accepted and standard farming practices, even if these practices harm or bother adjacent property owners or the general public. . . . View Full Definition

Laws Of Hospitality: Called xenia in Greek, the term refers to the custom in classical Greece and other ancient cultures that, if a traveler comes to a town, he can ask any person there for food, shelter, and gi . . . View Full Definition