Agency

What is 'vicarious liability' in the context of Oregon real estate agency law?

AWhen a buyer holds the seller liable for misrepresentation
BWhen a principal broker may be held liable for the wrongful acts of affiliated licensees acting within the scope of their authority✓ Correct
CWhen a licensee is personally liable for a client's tax obligations
DWhen OREA holds a licensee liable for a third party's misconduct

Explanation

Vicarious liability holds a principal broker potentially responsible for the unlawful or negligent acts of affiliated licensees when those acts occur within the scope of their licensed activities. This is why principal brokers must maintain adequate supervision of affiliated licensees — their failure to supervise can create liability for the brokerage.

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