Agency
Which of the following best describes the concept of 'vicarious liability' in real estate agency?
AA buyer suing a seller for non-disclosure
BA principal broker being held liable for the wrongful acts of their affiliated licensees committed within the scope of their employment✓ Correct
CA buyer's agent being held liable for the seller's misrepresentations
DA licensee personally guaranteeing a buyer's mortgage
Explanation
Vicarious liability holds a principal (such as a principal broker) responsible for the wrongful acts of their agent (affiliate broker) committed while acting within the scope of employment. This underscores the importance of broker supervision.
Related Tennessee Agency Questions
- The real estate doctrine of 'caveat emptor' (let the buyer beware) has been significantly limited in Tennessee by:
- A Tennessee buyer's agent who advises their client to make a full-price offer with no contingencies in a competitive multiple-offer situation is:
- In Tennessee, a buyer's representation agreement creates a:
- In Tennessee, a broker's duty to a seller under a listing agreement includes all of the following EXCEPT:
- A principal broker in Tennessee owes which of the following duties to a customer (non-client)?
- A Tennessee affiliate broker is working with a buyer but has no buyer representation agreement. The broker is most likely acting as:
- A licensee who represents a buyer while receiving compensation from the seller without disclosure is:
- The difference between a general agent and a special agent is that a general agent:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →