DRE & Licensing

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 employment✓ Correct
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

Explanation

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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