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AgencyBroker LiabilityHARD

Under the doctrine of respondeat superior, which of the following is TRUE?

Correct Answer

B) A broker is legally responsible for the wrongful acts of their agents committed within the scope of employment

Respondeat superior is a doctrine of vicarious liability under which a broker (as employer) is legally responsible for the wrongful acts of their licensed agents (as employees) when those acts are committed within the scope of their employment. In Maine, this means a supervising broker can be held liable for an agent's misrepresentations or other violations made during the course of a real estate transaction.

Answer Options
A
Agents are liable for any misconduct committed by their broker
B
A broker is legally responsible for the wrongful acts of their agents committed within the scope of employment
C
Only the principal who benefits from a transaction bears liability for agent misconduct
D
Liability for agent misconduct is shared equally between the broker and the agent

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Related Topics & Key Terms

Related Topics:

vicarious-liabilitybroker-supervisionE&O-insurance

Key Terms:

respondeat superiorvicarious liabilitybroker liablescope

Related Concepts

An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.

The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

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