Under the doctrine of respondeat superior, who is held vicariously liable for the wrongful acts of a licensed salesperson committed within the scope of their employment?
Correct Answer
B) The broker is vicariously liable for the acts of their licensed agents
Under the doctrine of respondeat superior ('let the master answer'), an Iowa broker is vicariously liable for the wrongful acts of their licensed salespersons committed within the scope of employment. This is why brokers must supervise their agents and maintain errors and omissions insurance.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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