Vicarious liability in real estate practice means:

• A. An employer can be liable for an employee's wrongful act at work; the employee can sue the employer
• B. An employee can sue the employer for acts outside work
• C. The employer is never liable for an employee's actions
• D. Only independent contractors can be liable in such cases

Answer: (A)

Vicarious liability means an employer is responsible for the wrongful acts of employees performed while carrying out their duties. In real estate practice, if a broker’s salesperson or staff member acts negligently or commits a wrong in the course of representing clients, the brokerage can be held liable to the harmed party, even though the act was committed by the employee. This setup also means the employee may have avenues to seek remedies against the employer in certain situations, reflecting accountability within the agency relationship. It doesn’t apply to acts outside the scope of employment, it doesn’t imply the employer is never liable, and it doesn’t generally extend to independent contractors unless there’s specific control or policy in place.