4.41 Antitrust Policy

The Company maintains a strong policy against any antitrust involvement by the Company, its agents, or employees. Few obligations can be taken more seriously than this area. The Company requires each person associated with the Company to participate in antitrust education and acknowledge his/her understanding of these principles. Two areas of the primary antitrust focus are:.

1. Price Fixing: Price fixing means any agreement, setting, consent to, suggestion, or implication with a competitor regarding a fee to charge. This includes fees charged to the public, fees split among brokers, and fees paid to agents. "Agreement" can be overt, covert, express or implied. It is very broad based and can even be suggested or implied by casual conversation with any competitor.

Accordingly, The Company, its agents, and staff are prohibited from discussing with any competitor, including an individual agent, any aspect of the fees the company charges or how total fees are split**. The Company determines its charges based on the Company's own independent internal analysis of its expenses, its revenue, its desired profit level, and its choice of the type and level of service it desires to provide.**

In any discussion with a member of the public regarding our charges, such as a listing appointment, the only acceptable answer about company fees is the foregoing explanation. Do not be drawn into a discussion about company fees, such as commissions as "the standard rate," "the Board rate," "the typical rate" or the like. If questions arise about other company's fees or commission rates, suggest that the potential client call several competitors to inquire directly from them..

2. Boycotting Competition: It is also a violation of federal law to make any agreement, express or implied, with a competitor to boycott or otherwise not deal with a third competitor. For example, assume Discount Realty opens an office. Then assume Bob Broker, an agent with Big Bucks Broker, and Alice Agent, an agent with Just As Big Broker, are having lunch one day and discuss the competitive impact of Discount Realty. Bob and Alice agree that Discount Realty is a danger to their large listing portfolios and further agree that individually they will not show Discount Realty's listings because "Something has got to be done about that price-cutting monger." This simple agreement with two agents is an illegal boycott. Even if it were implicit and not overt, it could be construed as an illegal boycott.

The Company prohibits any agent/loan officer or staff member from making any agreement, or suggestion with a competitor, including an individual agent, that he/she or the Company will not deal with a third broker or agent whether it is a listing company, buyer's brokerage, discount broker, or any other broker or agent.