Agency
In Kentucky, a principal broker who fails to properly supervise a sales associate who commits fraud may face:
ANo liability because the associate acted independently
BVicarious liability and KREC disciplinary action✓ Correct
CCriminal prosecution only
DCivil liability limited to the amount of the associate's commission
Explanation
Principal brokers are responsible for supervising their licensees and may face vicarious liability for an associate's actions within the scope of their employment. KREC may also take disciplinary action against the broker for failure to adequately supervise.
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