EstatePass
AgencyBroker LiabilityHARD

Under the doctrine of respondeat superior, who is held vicariously liable for the wrongful acts of a salesperson committed within the scope of their employment?

Correct Answer

B) The employing broker, as the salesperson's principal

Under the doctrine of respondeat superior ('let the master answer'), an employing broker is vicariously liable for the wrongful acts of their salesperson when those acts are committed within the scope of employment. In Rhode Island, this means the broker can be held legally responsible for a salesperson's misconduct during the course of real estate activities performed on behalf of the brokerage.

Answer Options
A
The buyer who benefited from the transaction
B
The employing broker, as the salesperson's principal
C
The seller, because they initiated the listing
D
The Rhode Island Department of Business Regulation

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Related Topics & Key Terms

Related Topics:

broker supervision requirementsvicarious liabilityRhode Island Real Estate License ActErrors & Omissions insurancescope of employment

Key Terms:

respondeat superiorvicarious liabilityemploying brokerscope of employmentbroker supervision

Related Concepts

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.

The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.

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