Agency
What is 'vicarious liability' as it relates to a Hawaii broker's responsibility for their salesperson's actions?
AA. The broker is liable only if they personally directed the wrongful act
BB. The broker may be liable for the acts of their salesperson committed within the scope of the agency✓ Correct
CC. Brokers have no liability for salesperson actions
DD. Liability is shared equally between broker and salesperson regardless of fault
Explanation
Vicarious liability holds brokers legally responsible for the actions of their licensed salespersons when those actions are performed within the scope of their employment.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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