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Which federal law prohibits monopolies and promotes fair competition?

  1. Broker exclusive agent receives commission no matter who sells the property

  2. Agent acts without permission

  3. Court prevents the principal from denying that agency, agency by estoppel

  4. 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.