Tennessee Real Estate License Exam Practice Question
A small broker committee in the local county has set up a new marketing idea. They will give every seller the same commission rate and it will not be negotiable. This will allow the consumers to know exactly what it will cost to list a property. This marketing plan is an example of
Correct Answer: B
Rationale: This marketing plan exemplifies price-fixing, as it establishes a uniform commission rate for all sellers, eliminating negotiation and competition among brokers. This approach can lead to higher costs for consumers, as it restricts market dynamics.
Option A, apostille, refers to a certification for international documents, which is unrelated to real estate practices.
Option C, market allocation, involves dividing markets among competitors, which is not applicable here since the plan focuses on commission rates rather than geographical or market segmentation.
Option D, consumer protection, aims to safeguard buyers and sellers, but the lack of negotiability may ultimately disadvantage consumers by limiting their options.
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