Question

Sales associate A and sales associate B work for the same firm. They agree to divide their region into an eastern half and a western half; sales associate A will handle listings in the east, and sales associate B will handle listings in the west. Which statement is TRUE

Answer 1

Answer: C)  The agreement does not violate antitrust laws.

Explanation:

Anti-trust laws in the United States are laws enacted at both federal and state level with the aim of protecting consumers by ensuring fair competition amongst firms. As such, these laws target things such as monopolies, price fixing and market allocation.

The sales associates are currently engaging in market allocation. However, this does not violate anti-trust laws because they work for the same firm and will be offering the same services and prices to people in either area and it is still the same firm covering both areas.