Under Ohio law, Broker Yamada's brokerage has 50 agents across five offices. Agent Rivera in the downtown office engages in undisclosed dual agency, while Agent Chen in the suburban office comingles personal funds with trust account deposits. Both violations are discovered during a Division audit. Broker Yamada claims the violations occurred in separate offices and the broker cannot personally supervise every agent at all times. Under ORC Chapter 4735, is this defense likely to succeed?
Correct Answer
A) No, because the broker's supervisory duty extends to all affiliated agents regardless of office location, and the broker must implement systems to ensure compliance
Under ORC §4735.18, the broker's supervisory duty extends to all affiliated agents across all offices. Physical presence is not required, but the broker must implement adequate systems, policies, and monitoring procedures to ensure compliance at all locations.
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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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