Which is an example of an illegal group boycott in real estate?

Prepare for the Massachusetts Real Estate Salesperson licensing exam. Utilize a variety of study modes, including flashcards and multiple-choice questions with comprehensive explanations. Achieve exam success!

An illegal group boycott in real estate occurs when agencies or real estate professionals agree to refuse doing business with a particular individual or group, which can stifle competition and negatively affect the market. In this context, agencies refusing to cooperate with each other on sales exemplifies such behavior. This type of collusion among agencies can lead to a limitation of options for consumers and can prevent free competition in the market, violating anti-trust laws.

Other options represent different scenarios that may or may not have competitive impacts. For example, agreeing to not advertise properties can be seen as a restrictive agreement, but it does not directly imply a boycott against a competitor. Setting commission rates collectively may raise concerns about price-fixing, but it generally falls into a different category of anti-competitive behavior than a boycott. Creating a marketing alliance can be a legitimate business practice that fosters cooperation for mutual benefit rather than exclusion. Thus, the refusal of agencies to collaborate on transactions represents the core principle of an illegal boycott by preventing free engagement in the market.

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