DRE & LicensingIntermediateCalifornia Exam

Under California law, a real estate broker may be held liable for the acts of their salespersons under the doctrine of:

ARespondeat superior (vicarious liability) for acts within the scope of employmentCorrect
BStrict liability for all acts of salespersons, even outside of employment
CNo liability — each salesperson is an independent contractor fully liable for their own acts
DLiability only if the broker personally directed the wrongful act

Why Respondeat superior (vicarious liability) for acts within the scope of employment Is Correct

Answer A: Respondeat superior (vicarious liability) for acts within the scope of employment

Under the respondeat superior doctrine, a broker (as employer/principal) can be held vicariously liable for the wrongful acts of their salespersons committed within the scope of their employment/agency. Even if salespersons are treated as independent contractors for tax purposes, the broker retains supervisory responsibility under the Real Estate Law.

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