A Michigan licensed broker receives a complaint from LARA-BPL that one of her affiliated salespersons placed advertising that failed to identify the brokerage. The broker claims she had no knowledge of the advertisement and that the salesperson acted unilaterally. Under Michigan's Occupational Code, which of the following best describes the broker's potential liability?
Correct Answer
A) The broker may be held responsible because Michigan law holds brokers accountable for the advertising activities of their affiliated salespersons
Under Michigan's Occupational Code, MCL 339.2512 and related provisions, a broker is responsible for supervising the activities of affiliated salespersons, including their advertising. Michigan law holds brokers accountable for ensuring that all advertising placed by their salespersons complies with state law. A broker cannot escape liability simply by claiming ignorance of a salesperson's non-compliant advertising — the duty to supervise is a core broker obligation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
More Practice Of Real Estate Questions
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