Under Ohio law, Broker Wallace has a salesperson, Agent Ford, who makes an unauthorized promise to a buyer that the seller will pay for all closing costs. The seller refuses. The buyer incurs unexpected costs and sues. Under ORC Chapter 4735, who may be held liable?
Correct Answer
A) Both Agent Ford and Broker Wallace, because the broker may be vicariously liable for the agent's unauthorized representations
Under ORC §4735.18, the broker may be vicariously liable for unauthorized representations made by affiliated salespersons. Agent Ford exceeded authority, but the broker's supervisory responsibility creates shared liability.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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