AgencyIntermediateArizona Exam

The doctrine of 'respondeat superior' in Arizona agency law means:

AThe agent alone is liable for errors in a transaction because only the party who committed the wrongful act can be held responsible
BAn employer (broker) may be vicariously liable for the wrongful acts of their employees (agents) committed within the scope of employmentCorrect
CThe broker is shielded from liability for a salesperson's conduct because salespersons are treated as independent contractors under Arizona law
DThe supervising broker, not the employing broker, must personally review and approve all offers to avoid vicarious liability claims

Why An employer (broker) may be vicariously liable for the wrongful acts of their employees (agents) committed within the scope of employment Is Correct

Answer B: An employer (broker) may be vicariously liable for the wrongful acts of their employees (agents) committed within the scope of employment

Respondeat superior ('let the master answer') holds that employers are vicariously liable for torts (wrongful acts) committed by their employees acting within the scope of their employment. Brokers can be liable for their salespersons' misconduct.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

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