Under the doctrine of respondeat superior, what is Hawaii's principal broker's liability for the actions of affiliated licensees?
Correct Answer
B) The principal broker is vicariously liable for the acts of affiliated licensees performed within the scope of their employment or agency.
Under the doctrine of respondeat superior ('let the master answer'), a principal broker in Hawaii can be held vicariously liable for the wrongful acts of affiliated licensees when those acts are committed within the scope of their employment or agency relationship. Hawaii's principal broker is responsible for supervising all licensees affiliated with their brokerage under HRS §467-1.6. This liability exists even without specific written instructions, and is not limited to closing activities.
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