Employment, competition and calling rules
Employment status, antitrust and Do Not Call rules
A commission-based pay arrangement does not answer every employment question. A familiar commission rate does not prove a price-fixing agreement. And a past client relationship does not override a request to stop calling. Start by identifying the rule, the parties and the conduct the question actually gives you.
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The short answer
For federal tax purposes, a licensed real estate agent is a statutory nonemployee when substantially all pay is based on sales or other output rather than hours, and a written contract provides for nonemployee treatment for federal tax purposes. Illinois sponsorship and supervision duties still apply. Competing firms must set their competitive terms independently. Covered prospecting also requires the applicable Do Not Call, consent, calling-time and recordkeeping checks; an exception under one rule does not satisfy every other rule.
Reviewed October 27, 2026. PSI lists employment status, antitrust and Do Not Call in national Practice of Real Estate, X.B.1-3. The entire Practice of Real Estate domain has 12 of the 100 scored national broker questions, including other topics. This page has no separate promised quota. The questions below are original teaching scenarios, not recalled PSI questions or a validated readiness test.
Keep these three decisions separate
- Employment classification: the IRS test concerns a licensed real estate agent, substantially all pay tied to sales or other output rather than hours, and a written federal-tax nonemployee contract. Calling someone a contractor, paying a commission or issuing a tax form does not replace the conditions. This federal tax treatment does not automatically decide every wage, unemployment, workers’ compensation or licensing question.
- Illinois working relationship: a contractor label does not cancel the sponsoring broker’s obligations. Rule 1450.735 requires the applicable written, dated and signed employment or independent-contractor agreement, including supervision, duties, compensation, duration and termination terms. An at-will arrangement can be documented. The Act controls conduct even when the contract calls the licensee independent.
- Competition: ask whether independent competitors agreed to replace competition with a common price, commission floor, discount restriction, customer division or territory division. A written agreement is not essential. Each firm can choose its own fees independently; similar rates alone do not prove coordination. Do not describe a customary rate as a legally required or industry-mandated commission.
- Refusal and tying: a joint refusal aimed at forcing higher agreed prices or excluding a discount rival raises boycott concerns. A unilateral choice of business partner is a different fact pattern. A tie makes access to one distinct product or service conditional on another. Market power, competitive effects and the governing legal test matter; an optional useful package is not automatically an illegal tie.
- Antitrust consequences: distinguish a criminal maximum, a possible alternative criminal fine and a private damages remedy. Sherman Act Section 1 states up to $100 million for a corporation, $1 million for another person and 10 years’ imprisonment, or both fine and imprisonment. Section 3571(d) can allow an alternative fine based on twice the greater of gross gain or gross loss, with its statutory qualification. Eligible private claimants under Section 15 can recover three times actual antitrust damages plus the specified costs and reasonable attorney’s fee. None is an automatic bill for every allegation.
- Do Not Call screening: identify the seller, the type of call, the number and the applicable federal rules. The FTC and FCC each have National Registry requirements and company-specific stop procedures. A current Registry screen does not erase an internal stop request. Registry data is for compliance, not for building a prospect list. Train anyone calling on the business’s behalf and document the required process.
- Business-relationship exceptions: name the agency before memorising the duration. Current FTC Section 310.2(q) uses 540 days after a qualifying transaction and 90 days after a qualifying inquiry or application, measured back from the call. FCC Section 64.1200(f)(5) uses 18 months and three months for its relationship definition. Those are different units. Neither relationship exception overrides the recipient’s seller-specific stop request.
- Calling method and timing: a live call, a prerecorded sales message and a marketing text do not necessarily have identical consent requirements. A relationship or Registry exception is not blanket permission for automation. For covered FTC outbound residential sales calls without prior consent, the federal calling window is 8 a.m. to 9 p.m. at the recipient’s location. Other applicable federal and state requirements still need their own check.
- Records and responsibility: FTC Section 310.5 generally requires covered records for five years, with specified categories and different starting events for some records. The rule includes scripts, consent and stop-request evidence, relevant Registry versions and call details. A seller cannot assume that a vendor’s promise removes every obligation. A written allocation of recordkeeping tasks and the seller’s continued access matter.
- Illinois scope and dates: Section 10 of the Telephone Solicitations Act expressly excludes licensees under the Real Estate License Act of 2000 and the other listed entities and associated persons. That exclusion is not an exemption from federal FTC or FCC rules or every other Illinois law. Likewise, a final rule published in October is not necessarily effective in October: the FCC rule published October 26, 2026 has a November 25, 2026 effective date.
- Act on a stop request through the applicable procedure. The current FCC company-list rule requires recording it when made and honouring it within a reasonable time, no more than 10 business days; its consent-revocation provisions also address reasonable methods and timing. That is not a right to keep sending marketing for 10 days or a reason to ignore a stricter applicable obligation. Keep the company-list, consent and call-method questions distinct.
| Rule or issue | Number or condition | Limit to remember |
|---|---|---|
| IRS statutory nonemployee | Licence + substantially all output-based pay + written federal-tax contract | Not an all-laws employment decision |
| Sherman Section 1 criminal maximum | Corporation $100 million; other person $1 million; prison up to 10 years | Alternative fine law can matter; conviction and sentencing are separate |
| Alternative criminal fine, Section 3571(d) | Twice the greater gross gain or gross loss | Unless that calculation would unduly complicate or prolong sentencing |
| Eligible private antitrust damages | Three times actual damages, plus specified costs and reasonable attorney’s fee | Not three times the criminal fine |
| FTC business relationship, transaction | Within 540 days before the call | Not an override of the seller-specific stop |
| FTC business relationship, inquiry/application | Within 90 days before the call | Must concern the seller’s relevant goods or services |
| FCC business relationship | 18 months for transaction; three months for inquiry/application | Different definition and units; stop requests still matter |
| Federal Registry process | Use a version obtained no more than 31 days before the call | Freshness alone is not the full safe harbour |
| Covered FTC residential outbound call without prior consent | 8 a.m. to 9 p.m., recipient’s local time | Not the caller’s office time or universal permission |
| FTC recordkeeping | Generally five years; category-specific starting events | Manual individual dialling has only a narrow call-detail exception |
| FCC company-specific stop procedure | Record when made; honour within a reasonable time, no more than 10 business days | Not an entitlement to continue unwanted marketing during that period |
| FCC final rule published October 26, 2026 | Effective November 25, 2026 | Publication and effectiveness are different dates |
The distinctions that matter
| Distinction | How it works | What to notice |
|---|---|---|
| Federal tax status and Illinois supervision | A tax classification does not remove licensing obligations. | The contractor still works under the applicable sponsoring relationship. |
| Commission and statutory nonemployee | Output-based pay is one condition, not the whole test. | Check the licence and written federal-tax contract too. |
| Independent pricing and price fixing | A firm’s own decision differs from an agreement among competitors. | Look for an agreement about rates, floors, discounts or other competitive terms. |
| Allocation and ordinary service choices | Rivals agreeing not to compete differs from one firm choosing its own service area. | We take the north, you take the south is a territorial agreement. |
| Joint boycott and unilateral refusal | Concerted pressure on a target differs from an independent refusal. | Identify the participants, agreement and competitive purpose. |
| Tying and an optional package | A condition requiring another service differs from a genuine choice. | Do not omit market power and the applicable legal test. |
| Criminal fine and private damages | Government punishment differs from compensation for an eligible injured claimant. | Two times gain or loss is not three times damages. |
| National Registry and company list | A general Registry entry differs from a stop request to this seller. | Check both before relying on a relationship exception. |
| FTC days and FCC months | 540/90 days and 18/3 months are different agency definitions. | A month is not always 30 days. |
| Registry exception and automated-call consent | An exception for one prohibition does not resolve every calling technology. | A past sale does not authorise every robocall or text. |
| Registry freshness and a complete safe harbour | A version no more than 31 days old is one condition. | Procedures, training, internal records, monitoring and the actual error still matter. |
| Record retention and permission | Keeping a record for five years is not permission to resume sales calls. | Do not turn a retention period into expiring consent or an automatic reset. |
Work through the facts
The contractor contract is only one part
A licensed agent has the required written federal-tax nonemployee contract, and substantially all compensation is based on completed sales or other output rather than hours.
- The facts supply the licence, compensation condition and contract.
- The question asks only about the identified federal tax treatment.
Answer: The agent fits the IRS statutory-nonemployee test on these facts. Do not extend that answer to every employment law or remove Illinois sponsorship requirements.
Contractor status does not cancel supervision
A sponsored Illinois licensee says, “I am a contractor, so the sponsoring broker cannot require the written working agreement or supervision.”
- Tax and licensing questions are separate.
- Illinois Rule 1450.735 expressly covers employment and independent-contractor agreements.
Answer: The statement is wrong. The required agreement and applicable Act duties still matter.
A commission floor agreed by rivals
Competing brokerages expressly agree that none will accept a listing below a shared commission floor. No integration or other additional arrangement is supplied.
- These are independent competitors.
- The stated agreement replaces independent pricing with a common minimum.
Answer: This is the price-fixing pattern. Calling the floor reasonable or customary does not make the naked agreement acceptable.
Two firms divide the market
Rival firms agree that one will serve only the north side and the other only the south side, so they will not compete for those customers.
- The firms are rivals.
- The facts expressly supply a geographic noncompetition agreement.
Answer: Classify the conduct as market allocation. A single firm independently choosing where to open an office is a different scenario.
An agreement to punish a discount rival
Competing brokerages agree to refuse dealings with a discount firm until it adopts their agreed higher pricing.
- The refusal is coordinated.
- The stated purpose is to enforce common pricing against a rival.
Answer: This combines a group-boycott concern with price fixing. Do not treat every independent refusal or every lawful cooperation arrangement as the same conduct.
Private damages are multiplied once
An exercise expressly supplies an eligible private antitrust claimant, all required elements and $20,000 of actual damages. Ignore interest and calculate damages before the separate costs and reasonable attorney’s fee.
- Three × $20,000 = $60,000.
- The trebled figure already contains the original damages.
Answer: The damages figure is $60,000, not $80,000. Do not add the original $20,000 a second time or multiply a criminal fine instead.
A prior client says stop
A seller can prove a qualifying recent transaction, but the recipient has specifically told that seller not to make further sales calls.
- A business relationship may support a particular Registry exception.
- The seller-specific stop defeats that relationship-based route.
Answer: Suppress further covered marketing calls to that person. Do not use the prior transaction as a reason to ignore the stop request.
Read the recipient’s clock
A covered FTC residential outbound sales call without prior consent would reach a recipient at 9:15 p.m. local time, even though the caller’s office clock reads 7:15 p.m.
- The rule uses the recipient’s location.
- 9:15 p.m. is outside the stated federal window.
Answer: The office clock does not make this call timely. This example tests the federal window, not every other permission or state requirement.
The alternative fine is a different calculation
An original exercise supplies an individual defendant, gross pecuniary gain of $2 million and gross pecuniary loss to others of $4 million from the offence. Assume Section 3571(d) applies and its calculation would not unduly complicate or prolong sentencing. The question asks only for its gain-or-loss figure.
- The greater supplied amount is the $4 million loss.
- Two × $4 million = $8 million.
- Do not add gain and loss before doubling them.
Answer: The alternative gain-or-loss figure is $8 million. This is not an automatic sentence, a treble-damages award or a statement that $8 million replaces the corporate statutory maximum in every case.
An inquiry inside three months but older than 90 days
A qualifying inquiry was made July 28, 2026 and the proposed live sales call is October 27, 2026. Assume the relationship otherwise qualifies under each named definition and no seller-specific stop exists. Consider only the inquiry-age component, not complete permission to call.
- July 28 to October 27 is 91 days.
- The October 27 call is before the three-month anniversary on October 28.
Answer: The inquiry does not satisfy the FTC’s 90-day component, but is within the FCC’s three-month component. That difference alone does not clear the call under every applicable requirement.
Mistakes to avoid
- Everyone paid a commission is a statutory nonemployee. Check all three IRS conditions and the specific federal-tax scope.
- A contractor needs no sponsoring supervision. Illinois licensing duties are separate from tax classification.
- Price fixing requires a signed document. An agreement can be oral or inferred from conduct.
- All similar fees prove collusion. Similar pricing alone does not prove a competitor agreement.
- An industry-standard rate must be charged. Firms must set their competitive terms independently.
- Any joint refusal or product package is automatically illegal. Use the agreement, conditions, market facts and applicable legal test.
- Every antitrust allegation costs $100 million. Maximum criminal penalties, alternative fines and private recovery are distinct.
- The national list replaces the company list. A seller-specific stop remains important.
- 18 months always equals 540 days. FTC and FCC definitions use different units.
- An inquiry is permission for every type of sales message. The relevant exception, seller, scope, method and any stop request matter.
- Refreshing the Registry alone creates a safe harbour. The other routine compliance and error conditions remain.
- A five-year record rule resets permission. Record retention is not a licence to resume unwanted calls.
Check your understanding
These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.
1. Which facts together match the IRS real estate statutory-nonemployee test?
- Any hourly worker who gets a tax form
- Licensed agent, substantially all output-based pay and the required written federal-tax contract
- Any worker with an unsigned contractor label
- Only the absence of an office desk
Show answer and explanation
Answer: B. Licensed agent, substantially all output-based pay and the required written federal-tax contract
The IRS identifies the licensed real estate category and the output-based-pay and written federal-tax contract conditions. A label or payment method alone is insufficient.
2. Does the federal-tax nonemployee result automatically decide every wage, unemployment or licensing issue?
- Yes, because state supervision cannot apply
- Yes, if the agent prefers that result
- No; the applicable law still needs its own analysis
- Yes, every legal test is identical
Show answer and explanation
Answer: C. No; the applicable law still needs its own analysis
The stated IRS treatment is for federal tax purposes. Do not turn it into an all-laws classification or an exemption from Illinois supervision.
3. A sponsored Illinois contractor rejects the required working agreement solely because of contractor status. Which rule fits?
- The tax contract repeals the License Act
- The applicable Illinois written-agreement and conduct duties still apply
- Only employees need an agreement
- An oral agreement always replaces Rule 1450.735
Show answer and explanation
Answer: B. The applicable Illinois written-agreement and conduct duties still apply
Rule 1450.735 expressly addresses employment and independent-contractor relationships and requires the applicable written, dated, signed agreement and terms. The Act still controls conduct.
4. Independent rival brokerages expressly agree on a minimum commission floor. What is the clearest issue?
- Property-tax equalisation
- Price fixing
- A required government rate
- Intestate succession
Show answer and explanation
Answer: B. Price fixing
The scenario supplies an agreement among competitors about a price floor. A reasonable-price or customary-rate label does not justify a naked price-fixing agreement.
5. Two firms independently charge the same fee. No coordination or other supporting facts are supplied. What can you conclude from similarity alone?
- It does not by itself prove price fixing
- Every equal rate is mandated by law
- Both firms have admitted a conspiracy
- Both firms must use a new common rate
Show answer and explanation
Answer: A. It does not by itself prove price fixing
Independent businesses can respond similarly to market conditions. An agreement can be inferred from appropriate evidence, but equal prices alone do not supply it.
6. Rivals agree not to compete for each other’s customers in assigned north and south territories. Which label fits?
- Ordinary independent office planning
- Statutory nonemployee
- A seller-specific opt-out
- Market allocation
Show answer and explanation
Answer: D. Market allocation
The agreement divides territory and competition. A single firm’s independent choice of service area is a different fact pattern.
7. Rival firms jointly refuse to deal with a discount competitor until it accepts their common higher pricing. What matters most?
- That the discount firm has no customers
- The coordinated refusal used to enforce agreed pricing
- That every business refusal is illegal
- That oral agreements cannot count
Show answer and explanation
Answer: B. The coordinated refusal used to enforce agreed pricing
The supplied joint pressure and pricing objective raise boycott and price-fixing concerns. Do not substitute a unilateral business choice for the actual agreement in the question.
8. An optional package offers a genuine choice to buy its services separately. Does the word package alone prove unlawful tying?
- No
- Yes, market facts never matter
- Yes, even without any forced condition
- Yes, every package is illegal
Show answer and explanation
Answer: A. No
A genuine choice differs from conditioning access to one distinct product on another. Tying analysis also requires the applicable legal and competitive conditions; not every bundle is unlawful.
9. Which pairing states the Sherman Act Section 1 corporate and other-person maximum fines, before considering applicable alternative-fine law?
- $60,000 and $20,000
- $100 million and $1 million
- $31 and $540
- $1 million and $100 million
Show answer and explanation
Answer: B. $100 million and $1 million
Section 1 states up to $100 million for a corporation and $1 million for another person, with up to 10 years’ imprisonment or both as provided. These are criminal maxima, not automatic private damages.
10. Which amount is the stated maximum term of imprisonment under Sherman Act Section 1?
- Five years in every case
- 31 days
- 90 days
- 10 years
Show answer and explanation
Answer: D. 10 years
The statute states imprisonment not exceeding 10 years. Actual conviction and sentencing, including other applicable provisions, are separate from recognising the statutory maximum.
11. All elements for eligible private antitrust damages are expressly supplied. Actual damages are $20,000. Before separate costs and reasonable attorney’s fee, what is the trebled figure?
- $40,000
- $80,000
- $60,000
- $20,000
Show answer and explanation
Answer: C. $60,000
Three times $20,000 is $60,000. That includes the original damages; adding the original sum again would double count it.
12. A seller has a qualifying business relationship, but this recipient has specifically asked it to stop sales calls. What follows?
- Only a National Registry entry can stop calls
- Do not rely on the relationship exception to ignore the seller-specific stop
- The seller gets an unlimited relationship exception
- The relationship overrides the stop
Show answer and explanation
Answer: B. Do not rely on the relationship exception to ignore the seller-specific stop
Both the identified FTC and FCC relationship routes preserve the effect of the seller-specific stop. The company’s internal suppression procedure matters even if the national list is clear.
13. Which current FTC relationship durations appear in Section 310.2(q)?
- 540 days for a qualifying transaction; 90 days for inquiry or application
- Five years for every relationship
- 31 days for both
- 18 years and three years
Show answer and explanation
Answer: A. 540 days for a qualifying transaction; 90 days for inquiry or application
The current FTC definition uses days. FCC Section 64.1200(f)(5) uses 18 months and three months; do not silently substitute one agency’s units for the other’s.
14. Which durations does the FCC relationship definition in Section 64.1200(f)(5) use?
- Five years for every transaction
- 18 months for transaction; three months for inquiry or application
- 31 days for every inquiry
- 540 months and 90 months
Show answer and explanation
Answer: B. 18 months for transaction; three months for inquiry or application
The FCC definition uses months. Other elements, the relationship’s scope and the recipient’s seller-specific stop still matter; the definition is not blanket robocall consent.
15. Does using a Registry version obtained no more than 31 days before a call, by itself, establish the entire federal error safe harbour?
- Yes, even if an internal stop was ignored
- No; the remaining routine compliance and error conditions also matter
- Yes, training and written procedures never matter
- No, because the number must always be 365 days
Show answer and explanation
Answer: B. No; the remaining routine compliance and error conditions also matter
Registry freshness is one condition. Written procedures, training, internal records and the other applicable compliance and error conditions cannot be omitted.
16. A covered FTC residential outbound sales call without prior consent reaches the recipient at 9:15 p.m. local time. The caller’s office time is earlier. Which answer fits?
- The office clock controls
- It is outside the identified federal window
- Any contractor may call at any hour
- The call is within the federal window
Show answer and explanation
Answer: B. It is outside the identified federal window
Use the recipient’s location for the stated 8 a.m. to 9 p.m. window. This does not settle every separate consent, coverage or state-law issue.
17. For an individual, assume Section 3571(d) applies without its undue-complication qualification being triggered. Gross gain is $2 million and gross loss to others is $4 million. What is its alternative gain-or-loss figure?
- $6 million
- $8 million
- $12 million
- $2 million
Show answer and explanation
Answer: B. $8 million
Twice the greater of the supplied $2 million gross gain or $4 million gross loss is $8 million. Do not add both before doubling. The question supplies applicability; the figure is not an automatic sentence or private damages award.
18. For an October 27, 2026 call, a Registry version was obtained September 25. What is its age, and does it meet the no-more-than-31-day freshness condition?
- 32 days; yes
- 32 days; no
- 30 days; yes
- 31 days; yes
Show answer and explanation
Answer: B. 32 days; no
September 25 to October 27 is 32 days, so it fails that freshness condition. A September 26 version would be 31 days old. Even that fresher version would not establish every other compliance or safe-harbour condition.
19. A qualifying inquiry is July 28, 2026; the proposed call is October 27. Considering only age, which statement is correct?
- It is 91 days old, outside the FTC component but before the FCC three-month anniversary
- 91 days is within the FTC’s 90-day period
- Every three-month period is exactly 90 days
- The age alone proves every call lawful
Show answer and explanation
Answer: A. It is 91 days old, outside the FTC component but before the FCC three-month anniversary
The three-month anniversary is October 28; October 27 is 91 days after July 28. These agency units differ. Other elements, any stop request, calling method and all applicable rules remain separate.
20. A marketing number is absent from the National Registry, but the person has specifically asked this seller to stop. Does manually dialling the next covered sales call erase that request?
- Yes, only prerecorded calls need an internal list
- No
- Yes, manual calls never count
- Yes, Registry absence overrides the company request
Show answer and explanation
Answer: B. No
The seller-specific stop is not erased by a clear national screen or manual dialling. Internal suppression and the applicable calling rules still matter.
21. Under FTC Section 310.5(a)(2), a person manually enters one number for an individual call. Which claim is accurate?
- No scripts, stop requests or consent evidence ever need to be kept
- All records must be destroyed immediately
- All manually dialled calls are exempt from every telemarketing law
- The stated exception is limited to specified call-detail fields; it does not erase every recordkeeping duty
Show answer and explanation
Answer: D. The stated exception is limited to specified call-detail fields; it does not erase every recordkeeping duty
The manual-single-number exception concerns the specified (a)(2)(vii) and (x) call-detail requirements. Do not expand it into a blanket exemption from Section 310.5 or other rules.
22. What follows from Section 10’s express Illinois Telephone Solicitations Act exclusion for Real Estate License Act licensees?
- Every federal calling rule disappears
- A contractor may ignore a stop request
- Every caller in Illinois is exempt from all calling laws
- The exclusion does not itself remove applicable FTC, FCC or other-law duties
Show answer and explanation
Answer: D. The exclusion does not itself remove applicable FTC, FCC or other-law duties
Read the scope of the particular Act. Its exclusion is not a federal exemption or an all-laws permission to call; a pending or engrossed bill is not a substitute for enacted operative text.
23. An FCC final rule published October 26, 2026 states an effective date of November 25, 2026. For an October 27 review, what is the sound date treatment?
- Backdate every new provision to October 1
- Treat publication as immediate effectiveness
- Assume no FCC rules apply until November
- Keep the future-effective change distinct from the October rules
Show answer and explanation
Answer: D. Keep the future-effective change distinct from the October rules
The stated effective date is November 25. Publication, adoption and effective dates are distinct. The current rules and any applicable orders still need to be identified; the future change is not already operative merely because it is published.
24. A qualifying past transaction supports a particular National Registry exception. Does that alone authorise all prerecorded sales calls and marketing texts?
- Yes, regardless of opt-out
- Yes, for every seller and affiliate
- Yes, technology never changes the requirements
- No
Show answer and explanation
Answer: D. No
Registry exceptions and the method-specific consent and opt-out rules are different checks. A prior transaction alone is not blanket permission for every automated marketing call, message or affiliate.
Common questions
Are real estate agents employees or independent contractors?
There is no useful all-laws answer based only on the job title. For the IRS real estate statutory-nonemployee treatment, identify the licensed agent, substantially all sales-or-output-based pay rather than hours, and the written contract providing for federal-tax nonemployee treatment. Other applicable employment laws and Illinois licensing obligations require their own analysis.
What does substantially all output-based pay mean?
The IRS describes payments for the agent’s services as substantially all directly related to sales or other output rather than the number of hours worked. Do not invent an 85% or 100% threshold from that wording. Commission-based compensation may support this condition, but the licence and written-contract conditions still matter.
Can an Illinois contractor work without sponsoring supervision?
Contractor status does not remove the applicable Illinois sponsoring relationship or duties. Rule 1450.735 expressly covers written employment and independent-contractor agreements, and the Act controls licensee conduct despite the label in a contract. A federal tax clause is not a substitute for the required Illinois working agreement or supervision.
Are real estate commissions fixed by law or an industry standard?
Do not describe a common market rate as legally required or as a rate all firms must charge. Independent competitors must set their competitive terms on their own. An agreement among rival firms about a floor, discount restriction or other price term raises antitrust concerns. A firm’s independent rate decision is a different question.
Does price fixing have to be in writing?
No. A competitor agreement can be written, oral or inferred from conduct and other evidence. Similar fees or simultaneous price changes alone do not prove the agreement. Read the facts for coordination, not just a familiar percentage.
How do market allocation and a group boycott differ?
Allocation divides customers, territories or another field of competition among rivals. A boycott concerns a concerted refusal to deal with a target. The same scenario may involve more than one issue, such as rivals jointly refusing to deal with a discount firm to enforce common prices. A unilateral choice not to serve an area or business is not the same agreement.
Is every bundled real estate service an illegal tie?
No. An optional package and a condition requiring a distinct second service are different facts. Market power, competitive effects and the applicable legal test matter. Do not assume that a referral, a single combined price or the word package proves every element of an antitrust tying violation. Other referral-payment laws can raise separate issues.
What are the federal antitrust penalties to recognise for the exam?
Sherman Act Section 1 states criminal maxima of $100 million for a corporation, $1 million for another person and up to 10 years’ imprisonment, or both as provided. Alternative fine law may permit a higher amount based on gain or loss. Separately, an eligible private claimant under Section 15 may recover treble actual damages plus the specified costs and reasonable attorney’s fee. Do not merge the remedies or treat a maximum as the automatic result of an allegation.
Do FTC and FCC business-relationship exceptions use the same periods?
No. Current FTC Section 310.2(q) uses 540 days after a qualifying transaction and 90 days after an inquiry or application. FCC Section 64.1200(f)(5) uses 18 months and three months. The FTC adopted its days wording in the 2024 final rule; older summaries still using months do not change that operative definition. Apply the named authority and every relevant condition, including any seller-specific stop.
Does a recent client relationship override Do Not Call?
A qualifying relationship can support a particular exception to National Registry restrictions, but it does not override the seller-specific request to stop. It also does not automatically establish consent for prerecorded sales calls, every marketing text, every affiliate or every other calling rule. Identify the seller and method before using an exception.
How often must the federal Registry data be refreshed?
The identified federal process uses a Registry version obtained no more than 31 days before the call. A fresh version is only part of the relevant compliance or error-safe-harbour conditions. Keep the required written procedures, training, internal stop records and documentation; the Registry is not a substitute for the company’s own list.
For the FCC company-list procedure, record the request when made and honour it within a reasonable time, no more than 10 business days. Do not turn that outer limit into permission for additional unwanted marketing, and check any other applicable obligation.
What time can a real estate prospecting call be made?
For the covered FTC outbound residential sales call without prior consent discussed here, the federal window is 8 a.m. to 9 p.m. at the recipient’s location. The FCC also has a local-time restriction for its defined telephone solicitations. Neither statement alone clears every caller, method, consent or other applicable law. Do not use the brokerage’s office clock to ignore the recipient’s time zone.
Does hiring a calling vendor transfer every obligation?
No. The seller must address the applicable compliance duties for calls on its behalf. FTC recordkeeping tasks can be allocated in a written seller-telemarketer agreement, but the rule includes continuing seller obligations to ensure compliance and retain access to delegated records. An unclear or absent allocation can leave both responsible for the specified records. A vendor’s assurance alone is not a complete compliance process.
Are these official PSI questions or proof that I am exam-ready?
These are original teaching questions based on the public outline and the identified primary rules. They are not recalled or predicted PSI items. A percentage on this short set is not a validated readiness measure. For each missed question, identify the actor, agreement, authority, time unit and missing condition before trying a new scenario.
How long must covered FTC telemarketing records be kept?
Section 310.5 generally requires five years, with different starting events for specified categories. For example, covered scripts and promotional materials run from when no longer used; certain provider contracts run from expiration. The current rule covers consent, stop requests, Registry versions and specified call details. Manually entering one number for an individual call has a narrow exception for particular call-detail fields, not a blanket exemption from all records. A retention period is not renewed consent to market.
Are Illinois real estate licensees covered by every provision of the Telephone Solicitations Act?
Section 10 expressly excludes licensees under the Real Estate License Act of 2000 and other listed entities and associated persons. That particular exclusion does not cancel applicable federal Do Not Call, consent or other-law duties. Read the current enacted provision and its scope rather than assuming that an Illinois bill, a general calling-hours summary or a contractor label answers every question.
Did the new FCC rule take effect in October 2026?
No. The final rule published October 26, 2026 states November 25, 2026 as its effective date. Its changes include consent-revocation methods and certain informational-call rules. For this October 27 review, those future changes are kept separate from the current rules and applicable orders. A marketing opt-out is not an excuse to keep sending sales pitches while resolving unrelated informational-message questions.
Can a bought lead or a vendor’s generic consent replace the seller’s own checks?
Do not assume so. The applicable rule may require demonstrable signed permission for the specified seller, number and calling method, and the person may have revoked it or requested no further calls. FTC prerecorded-sales-call requirements and FCC marketing-call and text rules are separate from a business-relationship exception. A lead label, open-house visit or vendor assurance alone does not supply every missing consent and compliance fact.
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Work through conduct, consumer-protection and transaction decisions before checking the explanations.
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Official sources and scope
The review separates federal tax treatment, Illinois licensing, competition law and FTC/FCC telephone rules. The federal agencies’ relationship definitions use different units. The October 2026 review date does not make a later effective rule current or determine the outcome of a particular employment, antitrust or calling matter.
- PSI June 24, 2026: Illinois II.A and IV.A.1-4 agency and disclosures
- 68 Ill. Adm. Code 1450.735: written work agreements and copies
- 225 ILCS 454/10-55, designated managing broker duties
- IRS: statutory nonemployees
- DOJ: the antitrust laws
- FTC: price fixing
- FTC: group boycotts
- FTC: tying the sale of two products
- 15 U.S.C. 1: Sherman Act offence and maximum penalties
- 18 U.S.C. 3571: alternative fines
- 15 U.S.C. 15: private antitrust recovery
- 16 CFR 310.2: current FTC relationship definition
- 16 CFR 310.4: abusive telemarketing acts
- 16 CFR 310.5: current recordkeeping
- FTC 2024 final rule: relationship units and recordkeeping
- 47 CFR 64.1200: current FCC calling provisions
- FCC final rule published October 26, 2026
- 815 ILCS 413/10: Telephone Solicitations Act jurisdiction
This is exam preparation, not advice for a specific transaction. State law and the applicable facts control. Our editorial and corrections process explains how to report an issue.