Employing Broker Diane supervises five broker associates. One of her associates, Greg, runs an unauthorized advertisement that violates CREC advertising rules by omitting the firm name. Greg acted without Diane's knowledge or approval. Under Colorado law, which statement most accurately describes Diane's potential liability?
Correct Answer
D) Diane may face disciplinary action by CREC for failing to adequately supervise Greg's advertising activities
Under Colorado law, an employing broker has a supervisory duty over the licensed activities of broker associates working under them, including advertising. C.R.S. § 12-10-217 and CREC rules establish that employing brokers are responsible for maintaining adequate supervision over their associates. Even if Diane had no actual knowledge of Greg's unauthorized advertisement, CREC may find that she failed in her supervisory duty by not having adequate policies, training, or oversight mechanisms in place to prevent advertising violations by associates.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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