BLAW Final

undisclosed agency

A type of agency relationship in which a third party is completely unaware that an agency relationship exists and believes that the agent is acting on her own behalf in entering a contract.

Protected class

Age Gender National origin Religion

Authority of the agent

Agent can become liable or principal can can become liable for agents acts or omissions

partially disclosed agency

An agency in which a contracting third party knows that the agent is acting for a principal but does not know the identity of the principal.

Ratification

Approval after the fact

A principle may be liable for a tort in 4 circumstances

Direct liability for torts. Respondents superior- whosever in charge is, responsible. Independent contractors- (certain conditions) Misrepresentation

Principals have the following duties to agent:

Duty to compensate, Duty to reimburse for reasonable expenses for doing agency business, Duty to indemnify the agent for losses suffered due to agency's business

In JarlCo's reorganization, the bankruptcy court forced dissenting creditors whose claims would be impaired to accept the reorganization plan. The court:

Engaged in a cram down

A principal is never liable for an independent contractor's torts.

False. A principal may be liable for an independent contractors torts in certain circumstances.

A reorganization plan under Chapter 11 requires unanimous consent by all creditors before it becomes effective

False. A reorganization plan must be confirmed by the court before it becomes effective and the court may force creditors to accept the plan.

An employer may terminate a whistle blower immediately because whistle blowers make defamatory comments to the public.

False. A whistle-blower is an employee who publicly discloses dangerous, illegal, or improper behavior by the employer

To be considered actual authority, the authority must be expressed in words orally or in writing.

False. Actual authority may be either express or implied.

All bankruptcy proceedings begin by filing a voluntary bankruptcy petition

False. All bankruptcy proceedings begin by filing a petition, either voluntary or involuntary, such as when creditors force a debtor into bankruptcy to reach the assets.

All employees are agents, and all agents are employees.

False. All employees are agents, but not all agents are employees. A real estate agent for a home seller is not the seller's employee. However, a realtor working for a real estate company will be the real estate company's employee.

All duties are delegable.

False. Certain duties are non-delegable, such as those that are unique.

Chapter 11 is available only to business enterprises

False. Chapter 11 is available to individuals and business enterprises

The Fair Labor Standards Act prohibits any form of child work or labor by any employer engaged in interstate commerce.

False. FLSA prohibits oppressive child labor by any employer engaged in interstate commerce. If FLSA prohibited any form of child work or labor by any employer engaged in interstate commerce, most farm owners who are also parents across the U.S. would be in jail.

OSHA may not inspect a workplace or issue citations for violations of the act without a warrant issued by a judge.

False. OSHA is authorized to inspect a workplace and issue citations for violations of the act and regulations.

Partnership capital belongs to the individual partners in equal shares.

False. Partnership capital belongs to partnership as an entity

Every employer has the right to request a prospective employee to take a pre employment polygraph

False. Private employers may NOT require or request employees or prospective employees to take a polygraph (lie detector) test

The Americans With Disabilities Act prohibits employers from disqualifying a job applicant or employee with a disability for any reason.

False. The ADA prohibits employers from disqualifying a job applicant or employee if the employee can, with reasonable accommodation, perform the essential functions of the job

Employment at will is the rule of law in all fifty states.

False. The rule still exists, but is limited today by statutes and three common law exceptions: Public policy, implied covenant of good faith & fair dealing, and employment promises

The two types of sexual harassment claims are quid pro quo and undue hardship

False. The two types of sexual harassment claims are quid pro quo and hostile work environment.

An agent is always liable for his own torts.

False. There are exceptions to the general rule.

Unless otherwise specified by statute, protections of the U.S. Constitution do not apply to government employees.

False. Unless otherwise specified by statute, the U.S. Constitution does not apply to private employment; public employees are protected by the U.S. Constitution.

If an employer's act violates Title VII, the aggrieved person must:

File a charge or complaint with the EEOC. Allow the EEOC to investigate the charge. Allow the EEOC to file a lawsuit or obtain resolution

The partnership interest includes a partner's:

Management and other rights participation & Share of profits and losses and right to receive partnership distributions

limited partnership

One partner is silent

Agency is a contract in which an agent is authorized to act on behalf of, and under the control of, a principal.

True

Agency is a fiduciary relationship.

True

Apparent authority arises if communications by principal to third party creates reasonable appearance of authority in the agent.

True

Discrimination based on a BFOQ is legal.

True

Once a voluntary bankruptcy petition has been filed, the automatic stay prevents a creditor from filing suit against the debtor for repossession of the property.

True

Partnership is an "association of two or more persons to carry on as co owners a business for profit."

True

The Civil Rights Act prohibits employers from discriminating on basis of race, color, religion, gender, or national origin.

True

The Revised Uniform Partnership Act (RUPA) is a model partnership statute.

True

The doctrine of respondeat superior means that a principal is liable for torts committed by employees acting within the course and scope of employment.

True

To participate in the estate of a bankrupt debtor, unsecured creditors must file a proof of claim within a certain time, usually six months after the first meeting of creditors.

True

Two methods to prove discrimination are disparate treatment and disparate impact.

True

Workers' compensation is an employee's exclusive remedy against an employer for covered injuries

True

If a principal fails to inform the agent about a defect in the product, the principal will be directly liable for an agent's torts.

True. A principal may incur direct liability for an agent's torts because the principal is at fault and liability need not be imputed.

An employer (100 employees) may not fire a man for taking a two month leave of absence to care for his seriously ill wife.

True. An employer with 50 or more employees must comply with the Family & Medical Leave Act that allows employees to take a total of 12 workweeks of leave during any 12-month period for one or more of several reasons: Birth of a child, adoption of a child, need to care for a spouse, child, or parent with a serious health condition, or employee's own serious health condition.

Agents may bind a principal on the basis of apparent authority.

True. This is why notification about termination is wise.

Agency may be created unintentionally.

True. This is why principals should be careful not to cloak a person with apparent authority or statements or actions indicating agency.

If an agent contracts for a legally existing and competent principal but lacks authority to enter contracts, the principal is not bound.

True. Thus, agent is bound on the theory of an implied warranty of authority to contract.

Under Workers' Compensation, employees recover only for:

Work-related injuries that arise out of or happen in the course of employment. Employees recover only for work-related injuries that arise out of employment (close relationship between nature of employment and injury) or happen in the course of employment (e.g., injury occurred within time, place, and circumstances of employment).

Manuel asked his friend Sunil, a good salesman, to sell his car and Sunil agreed. Does an agency relationship exist?

Yes, Sunil is an agent for Manuel

Days before filing for reorganization, Bernie gave six of his properties to friends in return for an agreement that they would sell the property back to him in five years. Has Bernie done anything wrong?

Yes, he engaged in fraudulent transfer

Carl owned a a pizza business and employed Zip to deliver pizzas. Carl knew that Zip occasionally drank beer while driving, but didn't fire Zip. Zip injured Dan while delivering pizzas and driving drunk. Is Carl liable to Dan for Zip's conduct?

Yes, since Carl knew about Zip's drinking and negligently retained Zip

Carl's Pizza hired Miller to be general manager. Miller hired Sam for pizza prep work. In general, would Carl's Pizza be obligated to honor the contract with Sam?

Yes; Miller acted with implied authority since he is general manager and Carl's Pizza must honor Sam's employment contract

Estoppel

You rely on what someone says and their stopped from backing out

General Partnership

partnership in which partners share equally in both responsibility and liability

Disclosed Agency

when the agent tells the third party that he is an agent