law

group boycott

A group boycott is an antitrust violation in which two or more competitors agree to refuse to do business with another person or company, such as a discount broker, to hurt competition. Under federal antitrust law, it is generally illegal regardless of the reason. Brokers may individually decide whom to work with, but they cannot agree with competitors to exclude someone.

Exam tip: The key is agreement among competitors. One broker independently refusing to cooperate is not a boycott; two or more agreeing to do so is.
Example: Two brokerages agree at lunch not to show listings from a new flat-fee competitor, which is a group boycott that violates antitrust law.

1. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

Answer & explanation

Answer: A. The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.

Related terms & state variants

antitrust market allocation price fixing tie-in arrangement

Sources

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Last verified: 2026-10-23