Agency
In Michigan, if an agent exceeds their authority under a listing agreement, the broker:
AIs not liable for the agent's acts
BMay be held liable under the doctrine of apparent authority if a third party reasonably relied on the agent's apparent authority✓ Correct
CMust ratify all acts performed by affiliated agents
DIs liable only if the act involved fraud
Explanation
Apparent authority arises when a third party reasonably believes, based on the principal's actions, that an agent has authority to act. The principal may be bound by acts performed within the scope of apparent authority.
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