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When potential customers, Grace and Leo Adams sit down with real estate broker, Sam Slama, they tell him they've just begun interviewing brokers before they
When potential customers, Grace and Leo Adams sit down with real estate broker, Sam Slama, they tell him they've just begun interviewing brokers before they sign with one to help them buy their first home. He assures them he understands, and that he will answer their questions to the best of his abilities. When they ask what his commission rate is he responds, "It's seven percent, just like all the other guys in town, as you'll find. We all charge the same; so it makes for a fair deal for our wonderful customers." Leo thinks the guy sounds great, but Grace is a bit suspicious of his ubercharm. Which of the following is true of this situation?
Grace is right: Sam is too good to be true. Commissions are negotiable, not set by law.
Grace has a good head on her shoulders. Sam is more than overly slick; he's a lawbreaker. It is a violation of the Sherman Antitrust Law to pricefix in this way.
While he may sound too good to be true, Slick Sam hasn't broken any laws, or lied. He's just trying to gain their trust in the hopes of earning their business, and there's no crime in that.
Both A and B
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