Agency
Which of the following best describes the relationship between an Alabama broker and their affiliated salesperson?
AThe salesperson is an independent contractor with no agency relationship to the broker
BThe broker is the principal and the salesperson is their agent, regardless of tax status✓ Correct
CThe salesperson is always a W-2 employee of the broker
DThere is no legal relationship unless the salesperson signs a partnership agreement
Explanation
In Alabama, the affiliated salesperson acts as the broker's agent for purposes of license law and agency law. The broker is vicariously responsible for the salesperson's acts, regardless of whether they are classified as an employee or independent contractor for tax purposes.
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