Legal Case Summaries

Note: NAR’s Code of Ethics and Standards of Practice were revised, renumbered and reformatted in 1995. The following cases have been organized according to the revised numbering of the Articles of the Code of Ethics. Where a summary of a case includes a reference to an Article of the Code of Ethics, both the original and revised numbering are noted. Only the current versions of the texts...

In Sustick v. Slatina, the Superior Court of New Jersey, Appellate Division, addressed a broker's allegations of tortious interference with contract by a real estate purchaser. The court held that the purchasers interfered with the broker's opportunity to earn a commission when they told the broker they were no longer interested and then purchased the home directly from the seller....

In McCue v. Deppert, the Superior Court of New Jersey addressed allegations by a broker against a purchaser for malicious interference with a listing contract. The court held that the buyer, who was initially shown the subject property by the broker, and who misrepresented to the seller that there was no broker involved, was liable to the broker for damages.

Kramer (Owner) orally...

In U.S. v. National Association of Real Estate Boards (NAREB), the U.S. Supreme Court held that services provided by a real estate agent are within the definition of "trade," and as a result, the price-fixing of real estate commissions was a per se violation of the Sherman Antitrust Act.

The Washington Real Estate Board, which was located in the District of Columbia, adopted...

In Associated Press v. U.S., the U.S. Supreme Court addressed two Associated Press (AP) bylaws which when viewed together were alleged to constitute a restraint of trade in violation of the Sherman Antitrust Act. The Court held that a bylaw which imposed unreasonable restraints on access to membership was a violation of the Act, but also held that a bylaw which limited access to AP services to...

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