Agency
Under NC agency law, if a listing broker's associate makes a material misrepresentation to a buyer, the broker-in-charge may be held responsible under the principle of:
ANo vicarious liability — each licensee is personally responsible
BRespondeat superior — the BIC (as principal/employer) may be vicariously liable for agent acts within the scope of employment✓ Correct
CEstoppel
DNovation
Explanation
Under respondeat superior, the employer/principal (BIC/firm) may be held vicariously liable for the wrongful acts of their employees/agents committed within the scope of their employment.
Related North Carolina Agency Questions
- When must a North Carolina licensee provide the 'Working with Real Estate Agents' brochure to a prospective buyer?
- A NC agent who advises their buyer client to offer a lower price because the seller needs to sell quickly — using seller motivation information the agent gained as a transaction facilitator — has violated the duty of:
- A NC buyer's agent whose buyer wants to submit an offer significantly below the list price should:
- In NC, 'subagency' in a real estate transaction traditionally means:
- Under North Carolina rule, when must a buyer's agency agreement be in writing?
- A NC buyer's agent who fails to disclose a known material defect because the seller is also a client (in a dual agency) has violated:
- A North Carolina buyer's agent owes which of the following fiduciary duties to the buyer?
- Under NC's seller agency, if a buyer makes an oral statement to the listing broker that they are very motivated and willing to go above asking price, the listing broker:
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