2. A broker took a listing which expressly authorized him to accept buyers' deposits. The broker accepted a deposit from a buyer, but then misappropriated the funds and fled. In this situation, the risk of the loss belongs to the:
A. seller, since the broker was acting within his express authority to accept deposits
B. buyer, since the broker was acting as his agent in regard to the deposit
C. seller, under the Uniform Vendor and Purchaser Risk Act, since possession had not been transferred
D. buyer, since the seller was not criminally culpable
- Question #2
- Answer: A
- Explanation: Accepting a buyer's deposit was within the agent's scope of authority, as authorized by the seller. Therefore, the seller bears the risk of loss of the deposit.