You are the auctioneer of a residential property. It is auction day and you have arrived early to ensure that all preparations are in place and that everything is in order for the auction. While walking around, you overhear a conversation between two (2) individuals where they agree that they won't bid against each other, that only one (1) of them will bid at the auction, and that they will share the profit when they "flip" the property.

1.) What term describes the above practice?

2.) Provide a description of what this term means?

3.) What action are you required to take in response to this scenario? Refer to the applicable legislation in your response.