Broker Johnson's sales associate fails to deliver a written offer to the seller within 24 hours as required by the listing agreement. The seller later discovers a higher offer was made during that period. What is the broker's potential liability?
Correct Answer
D) Potentially liable for the seller's damages including the difference in offer amounts
Correct: D - Potentially liable for the seller's damages including the difference in offer amounts. The broker is vicariously liable for the sales associate's actions and could face damages for the seller's losses, including the difference in offers. B understates potential damages. Why not A: This option is incorrect because "No liability since the sales associate acted independently" does not match the rule tested by the question. The correct answer is "Potentially liable for the seller's damages including the difference in offer amounts". The broker is vicariously liable for the sales associate's actions and could face damages for the seller's losses, including the difference in offers. B understates potential damages. Why not B: This option is incorrect because "Liable only for the amount of lost commission" does not match the rule tested by the question. The correct answer is "Potentially liable for the seller's damages including the difference in offer amounts". The broker is vicariously liable for the sales associate's actions and could face damages for the seller's losses, including the difference in offers. B understates potential damages. Why not C: This option is incorrect because "Liable only if the broker was personally aware of the delayed delivery" does not match the rule tested by the question. The correct answer is "Potentially liable for the seller's damages including the difference in offer amounts". The broker is vicariously liable for the sales associate's actions and could face damages for the seller's losses, including the difference in offers. B understates potential damages.
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