Matt Bower, a developer, conditions the sale of a lot on Will Jones agreeing to list the property with him after construction. This action violates?

Study for the Alabama Real Estate Post-License Exam. Engage with flashcards and multiple-choice questions, with hints and explanations for each question. Get ready to excel on your exam!

The correct answer to this question involves understanding the implications of anti-competitive practices in real estate transactions, specifically as they relate to the Sherman Act. The Sherman Act is a federal statute that prohibits monopolistic behavior and contracts, combinations, or conspiracies that restrain trade or commerce.

In the scenario, Matt Bower's condition of the sale, which mandates that Will Jones must agree to list the property with him after construction, can be viewed as a form of tying arrangement. This occurs when a seller requires the buyer to purchase an additional product or service as a condition of the sale. Such practices can limit competition by forcing the buyer into a relationship with one provider and can inflate costs or reduce choices for consumers.

Therefore, by conditioning the sale of the lot on Will Jones's agreement to list the property exclusively with him, Matt Bower is engaging in a practice that could be interpreted as a restraint of trade, consequently violating the Sherman Act. This understanding of the act's purpose helps clarify the reason for selecting this answer as the correct one.

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