Agency

What is 'respondeat superior' in the context of Illinois real estate brokerage?

AA Latin phrase meaning 'let the superior respond'; managing brokers are required to respond to all IDFPR inquiries
BThe legal doctrine holding employers (managing brokers/brokerages) liable for the acts of their employees/sponsored brokers performed within the scope of employment✓ Correct
CA requirement that managing brokers review and sign all contracts
DThe principle that the client's instructions always supersede the agent's judgment

Explanation

Respondeat superior ('let the master answer') is the legal doctrine that an employer is liable for the wrongful acts of employees committed within the scope of employment. In Illinois real estate, this means a managing broker and brokerage can be held liable for the unauthorized and authorized acts of sponsored brokers when those acts occur within their real estate activities.

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