Under the doctrine of respondeat superior, who may be held vicariously liable for the wrongful acts of a real estate salesperson committed within the scope of their employment?
Correct Answer
B) The supervising broker of the salesperson
Respondeat superior is a common law doctrine meaning 'let the master answer.' Under this doctrine, an employer (the broker) may be held vicariously liable for the negligent or wrongful acts of their employee (the salesperson) when those acts occur within the scope of employment. In Montana, this principle reinforces the broker's supervisory responsibility under MCA 37-51-321. The salesperson may also remain personally liable, but the broker cannot escape liability simply because the wrongful act was committed by a licensee under their supervision.
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Related Topics & Key Terms
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Related Concepts
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.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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