Who is liable for the actions of the advertisement agency?

The liability for the actions of an advertisement agency typically falls on the client, in this case, the dealer. This is based on the principle that the dealer has hired the agency to create and disseminate advertisements on their behalf, thus retaining responsibility for the content and conduct of the advertising campaign. The dealer is usually bound by regulatory standards and laws governing advertising practices, making them accountable for ensuring that their ads comply with legal and ethical requirements.

While an advertisement agency may also be responsible for its actions, particularly if it has engaged in negligent practices, the primary liability generally resides with the client who authorized and benefited from the advertisement. This reflects the understanding that the dealer has oversight over the agency's operations since the agency acts as an extension of the dealer in promoting their business.

In this scenario, it is less likely for only the agency to bear full responsibility or for both parties to share liability without significant specifics indicating otherwise. Therefore, the dealer's accountability is foundational in determining liability in advertising contexts.