Agency

What is 'vicarious liability' in the context of Illinois real estate brokerage?

ADirect personal liability of an agent for their own actions
BThe liability of a managing broker or brokerage for the authorized acts of affiliated licensees✓ Correct
CLiability shared between two brokerages in a co-brokerage transaction
DCriminal liability that automatically transfers from broker to managing broker

Explanation

Vicarious liability imposes legal responsibility on one party (the principal/employer) for the actions of another (the agent/employee) when those actions are within the scope of the authorized relationship. In Illinois real estate, managing brokers and brokerages can be vicariously liable for the authorized acts of affiliated licensees.

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