Under Ohio law, Broker Davis's salesperson, agent Carter, provides negligent advice to a buyer client that results in the buyer overpaying by $40,000 for a property. The buyer sues for damages. Under Ohio agency law, who may be held liable?
Correct Answer
A) Both agent Carter and Broker Davis, because the broker may be vicariously liable for the salesperson's negligence
Under ORC §4735.18 and Ohio agency principles, the broker may be vicariously liable for the negligent acts of affiliated salespersons performed within the scope of their agency duties. Both the salesperson and the broker may face liability.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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