Is it a violation of antitrust laws for an HOA to create an approved contractor list?
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Is it a violation of antitrust laws for an HOA to create an approved contractor list?
A friend of mine, a contractor, received a letter from a member of an HOA architecture committee basically threatening him that the HOA board is working on an
Asked on May 27, 2016 under Business Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
No, it is not against federal anti-trust law for an entity or organization to create a list of contractors which it will use for work on its own property or on property subject to its rules/authority. Approved contractor lists are actually very common and unobjectionable. The anti-trust laws do not guaranty a right to bid for work or get work, or restrict people in who they decide can do work for them--they (to admittedly oversimplify) prohibit businesses from getting together and setting their policies, prices, availabilty to do work, etc. in lockstep, so as to deny the consumer choices or options. So the anti-trust laws don't protect the contractors, but they can protect consummers from contractors who gang together to eliminate or stifle competition.
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