If a salesperson affiliated with a broker commits a license-law violation, what is the broker's potential exposure?

Because the broker is responsible for supervising affiliated licensees, the broker can be held accountable when an agent violates license law — particularly where inadequate supervision allowed the violation to occur. A broker who had no reasonable system to oversee transactions, advertising, and trust funds may be disciplined for failure to supervise even without personal involvement in the act. This is why brokers maintain written policies, review files, and monitor trust accounts. The principle reflects the broker's gatekeeping role: the license law places the duty to ensure compliance on the broker, not solely on the individual agent.