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Laws Of Agency Fiduciary DutiesTermination_and_liabilityEASY

A California broker receives a written complaint from a consumer alleging that one of the broker's salespersons engaged in discriminatory practices. Under California law, the broker's initial obligation is to:

Correct Answer

B) Investigate the complaint and take appropriate corrective action as part of the broker's supervisory duties

Under California Business and Professions Code §10159.2 and Commissioner's Regulations §2725, the broker has a duty to supervise salespersons and address complaints about their conduct. The broker must investigate the complaint, determine the facts, and take appropriate corrective action, which may include additional training, discipline, or termination depending on the findings.

Answer Options
A
Immediately terminate the salesperson to avoid liability
B
Investigate the complaint and take appropriate corrective action as part of the broker's supervisory duties
C
Forward the complaint to the DRE without conducting any internal review
D
Ignore the complaint unless a lawsuit is filed

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Related Topics & Key Terms

Key Terms:

broker_supervisioncomplaint_handlingdiscriminationcorrective_action

Related Concepts

An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.

The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

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