Brad Reed Is a Real Estate Broker Who Charges Commissions

Multiple Choice

Brad Reed is a real estate broker who charges commissions of 3.5%. Most of the brokers in his area charge 4.5%. One of those brokers approaches Brad and offers, "Look, if you will just charge 4.5% like the rest of us, we will make up any drop in business that you see after the increase." Which of the following statements is correct?

A) The offer is simply a contract of cooperation.
B) The offer is an attempt at price-fixing.
C) The other brokers would have to be there for the offer to be price-fixing.
D) None of the above