Texas Real Estate State Practice Exam

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Prepare for the Texas Real Estate State Exam with comprehensive study materials. Engage in multiple choice questions and gain insights with in-depth explanations and examples. Ace your exam confidently!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Which federal law prohibits monopolies and promotes fair competition?

Broker exclusive agent receives commission no matter who sells the property
Agent acts without permission
Court prevents the principal from denying that agency, agency by estoppel
Sherman Anti-Trust Act

The correct answer is: Sherman Anti-Trust Act

The Sherman Anti-Trust Act, enacted in 1890, is a federal law that prohibits monopolies and promotes fair competition. This act was created to prevent businesses from engaging in anti-competitive practices, such as price-fixing and monopolistic behavior. The other options listed are all unrelated to the question of which federal law prohibits monopolies and promotes fair competition. Option A is about a broker receiving commission, option B is about an agent acting without permission, and option C is about a court preventing a principal from denying agency. None of these choices pertain to anti-trust laws or fair competition. Therefore, the most accurate and relevant answer is D.