Agency
A South Dakota broker who is found to have negligently supervised a salesperson who committed fraud may be subject to:
AOnly civil liability — not SDREC discipline
BSDREC discipline for failure to supervise plus potential civil liability✓ Correct
CNo liability since the salesperson is responsible for their own acts
DCriminal prosecution only
Explanation
Brokers are responsible for the supervision of their licensees. Negligent supervision can result in SDREC discipline for the broker as well as civil liability for damages caused by the salesperson's misconduct.
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