Maine Real Estate License Practice Exam

In which situation is the Designated Broker not responsible for advertising compliance?

1. When the advertisement is placed by an independent contractor

2. When the advertisement is placed by a subordinate licensee

3. When the firm policy states otherwise

4. There is no situation; the Broker is always responsible

The correct answer is: When the advertisement is placed by an independent contractor

In the context of real estate advertising compliance, the situation where the designated broker is not responsible pertains to when an advertisement is placed by an independent contractor. This is because independent contractors operate under their own authority and are generally responsible for their own actions in terms of compliance with advertising regulations. The designated broker's responsibility mainly covers advertisements that are under the jurisdiction of their firm, especially those generated by employees or subordinate licensees, since these individuals act within the scope of the broker's business operations. An independent contractor, by definition, works independently and is not viewed as an employee. Thus, any advertising they carry out does not fall under the broker's supervision or responsibility unless otherwise stipulated by a specific contractual agreement. In this context, the other situations specify circumstances where the broker's responsibility remains intact, particularly in relation to subordinate licensees (who are directly linked to the brokerage), firm policy guidelines (which can establish liability), and the overall principle that the broker is typically liable for compliance concerning advertisements managed by their employees or affiliated agents.