ACCT 324- Module 3 Exam
Boycott
a refusal to deal with, purchase goods from, or work for a business
Vicarious Liability
a situation in which one party is held liable for the unlawful actions of a third party.
Strike
a temporary, concerted withdrawal of labor. Potentially the most dangerous weapon employees use to secure recognition and improve their working conditions.
General Partnership
a type of partnership in which all partners share equally in profits, responsibility, and liability
Partnership
a voluntary association between two or more persons who co-own a business for profit
Secondary boycotts
are illegal, occur when employees have a labor dispute with their employer and boycott another company to force it to cease doing business with the employer
An employer who has repeatedly violated the Americans with Disabilities Act (ADA) may be subject to fines of up to ____. a) $300,000. b) $100,000. c) $100 per day d) $44,000.
b) $100,000.
When a principal falsely leads a third party to believe that another individual serves as his or her agent, the principal has created agency by:
estoppel
Durable power of attorney
exists when person executes a power of attorney which will become or remain effective in the event he or she should later become incapacitated
Specific power of attorney
grants the agent express authority over specifically outlined acts, such as signing the closing documents for an absent seller.
Syndicate
investment group that comes together to finance a specific large project
Gratuitous Agent
is an agent that works for free.
Actual Notice
it directly informs third parties orally or in writing, that the agency agreement has terminated.
Workers Compensation
laws that provide financial compensation to employees or their dependents when covered employee injured/killed on the job. To demonstrate that : 1. He or she is an employee 2. Both employer and employee are covered by the state workers compensation program 3. The injury occurred on the job
Indemnification
to compensate that party for losses that that party has incurred or will incur as related to a specified incident.
Duty to compensate
A principal's obligation to pay an agent for his or her services; unless the parties have agreed the agent will act gratuitously
Which of the following should be formed to avoid double taxation?
An S corporation
Foreseeable Leave
An employee whose need is foreseeable must advise the employer at least 30 days before the leave needs to begin. If the leave is unforeseeable, the employee must give notice as soon as practicable, defined as within one or two business days after the need becomes known.
Constructive Trust
An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property.
Advantages of a sole proprietorship
Easiest to start Single owner keeps all the profits Taxed once as personal income
The _____ is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.
Employee Retirement Income Security Act
Family and Medical Leave Act (FMLA)
Federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or for an employee's own serious illness; or a serious health condition that renders the employee unable to perform any of the essential functions of his or her job
Undisclosed Principal
If a third party does not know an agent is acting on behalf of a principal
Federal Unemployment Tax Act (FUTA)
Law that requires employers to pay unemployment taxes to the federal government Provide unemployment compensation to qualified employees who lose their jobs
Duty of Notification
The agent must notify the principal of any relevant information in a timely manner.
Change in Law
when a new law makes the commission of an existing agency agreement illegal, the agreement is terminated.
Demand an Accounting
withhold further performance of her duties until the principal supplies appropriate accounting data.
Sole Proprietor
you have sole control over the management and profits
Business Trust
Business organization governed by group of trustees, who operate trust for beneficiaries
Substantial Departure
if an agent makes a substantial departure from the course of the employers business, the employer is not liable.
Implied Contract exception
An exception to the employment-at-will doctrine stating that a legally binding agreement is created between an employer and employee based on their actions, and not on a formal contract.
Signal picketing
An unprotected form of picketing in which services and/or deliveries to the employer are cut off.
____ consists of negotiations between an employer and a group of employees so as to determine the conditions of employment.
Collective bargaining
Occupational Safety and Health Act (OSHA)
Created to protect workers and their health. Its main aim was to ensure that employers provide their workers with an environment free from dangers to their safety and health, such as exposure to toxic chemicals, excessive noise levels, mechanical dangers, heat or cold stress, or unsanitary conditions.
Drug Free Workplace Act
U.S. law that requires federal contractors with contracts of $25000 or more as well as recipients of grants from federal government to certify they are maintaining a drug-free workplace.
Franchise
a business that exists because of an arrangement between the franchisor (an owner of a trade name or trademark) and the franchisee (a person who sells goods or services under the trade name or trademark)
S corporation
a corporation under federal tax law but is taxed like a partnership as long as it follows certain regulations. (avoid double taxation)
Power of Attorney
a legal document authorizing someone (an agent) to act on your (the principals) behalf
Corporation
a legal entity formed by selling shares of stock to investors, who then become shareholders and the owners of the company
Revocation of Authority
a principal can revoke an agent's authority at any time. However, such revocation might constitute a breach of contract with the agent, leaving the principal liable for damages
Principal-Agent Relationship
a relationship formed when an employer hires an employee and gives that employee authority to act and enter into contracts on his or her behalf (most basic type)
Agency Coupled with an Interest
a special kind of agency relationship created for the agent's benefit, not the principal's. The principal may not terminate this relationship, which is also called power given as security. Rather, it is terminated when an event occurs that discharges the principals obligation.
Which of the following is considered a separate legal entity? a) A corporation b) A limited liability partnership c) A syndicate d) A sole proprietorship
a) A corporation
The Age Discrimination in Employment Act (ADEA) of 1967 applies to: a) employees or applicants of age 40 or older. b) employers of age 35 or above. c) only to employment agencies that have not less than 50 members and the members are 40 or older. d) only to unions that have 10 or more members who are 50 or older.
a) employees or applicants of age 40 or older.
A plaintiff proves a disparate impact case by first: a) establishing statistically that a rule governing employment disproportionately restricts employment opportunities for a protected class. b) avoiding liability by demonstrating that a practice or policy of discrimination is a business necessity. c) articulating a legitimate, nondiscriminatory business reason for the action. d) proving that an employee was intentionally discriminated on the basis of race, color, national origin, sex, or religion.
a) establishing statistically that a rule governing employment disproportionately restricts employment opportunities for a protected class.
A(n) _____ typically allows the agent to conduct all business for the principal. a) general power of attorney b) inherent agency power c) special power of attorney d) durable power of attorney
a) general power of attorney
Misrepresentation liability depends on: a) whether the principal authorized the agent's act. b) the agent's duty of cooperation. c) the doctrine of "respondeat superior." d) whether the agent/employee was acting in the scope of employment.
a) whether the principal authorized the agent's act.
A gratuitous agent is one who:
acts without consideration
Limited Liability Partnership (LLP)
all the partners assume liability for one partners professional malpractice, but only to the extent of the partnerships assets; the other partners personal assets cannot be taken. Each partner is liable for her own negligence and the negligence of those that she supervises.
Bona Fide Occupational Qualification Defense
allows an employer to discriminate in hiring on the basis of sex, religion, or national origin (but not race or color) when doing so is necessary for the performance of the job.
General power of attorney
allows the agent to conduct all business for the principal.
Taft- Hartley Act of 1947
amended the Wagner Act and was designed to curtail some of the powers the unions had acquired
Disloyalty of Agent
an agency agreement is terminated whenever the agent, unknown to the principal, acquires interest against the principal's interest.
Tort Liability
an agent who commits a tort that injures a third party is personally liable for his or her actions, regardless of both the classification and the liability of the principal
Duty of Accounting
an agent's obligation to keep an accurate account of the transactions of money and property made on behalf of the principal
Duty of Performance
an agent's obligation to perform the duties specified in the agency agreement and to do so with reasonable skill and care
Executive Exemption
an individual may be mandatorily retired after age 65 if two conditions are met: 1. He or she has been employed as a bona fide executive for at least 2 years immediately before retirement 2. On retirement he or she is entitled to nonforfeitable annual retirement benefits of at least $44,000
Cooperative
an organization formed by individuals who usually pool their resources to gain an advantage in the market.
Advantages of a Franchise
assistance from franchisor in starting franchise trade name/trademark recognition franchisor advertising
Which of the following, as suggested by the courts, is the most important duty an agent owes to the principal? a) Duty of performance b) Duty of loyalty c) Duty of notification d) Duty of obedience
b) Duty of loyalty
EEOC Right To Sue Letter
if the EEOC decides not to sue, it notifies the plaintiff of his or her right to file an action and issues the plaintiff a right to sue letter, which is not intended to be anything other than a statement that the plaintiff has followed the proper initial procedures and therefore may file a lawsuit.
Duty of Loyalty
most important duty, agent has a responsibility to act in the interest of the principal, avoiding conflicts of interest and protecting the principals confidentiality.
Disadvantages of a franchise
must meet contractual requirements Has little to no creative control over the business
National Labor Relations Board (NLRB) interprets and enforces the National Labor Relations Act (NLRA)
1. Monitor the conduct of the employer and the union during an election to determine whether workers want to be represented as a union 2. Prevent and remedy unfair labor practices by employers or unions 3. Establish rules interpreting the act
Rights and Remedies of the Agent
1. Tort and contract remedies 2. Demand for an Accounting 3. Specific Performance
Agency Relationships can exist as one of four types
1. expressed agency 2. agency by implied authority 3. apparent agency 4. agency by ratification
Agent Duties
1. performance 2. notification (of certain events) 3. loyalty 4. obedience (following proper instructions) 5. accounting (keeping track of finance) -when an agent fails to fulfill his duties, that failure provides the basis for a contract or tort action against the agent.
Which of the following statements is true of independent contractors? a) Building contractors, doctors, stockbrokers, and lawyers are types of independent contractors. b) All independent contractors are agents. c) Independent contractors can enter into contracts on behalf of the principal even without the authorization from the principal. d) Employers are generally liable for the actions of independent contractors.
a) Building contractors, doctors, stockbrokers, and lawyers are types of independent contractors.
Which of the following statements is true of a joint venture? a) It is usually terminated when all the stock has been sold. b) It must be an agreement between two large businesses. c) It must be formed by drawing up a formal agreement. d) It is automatically terminated when one of the members dies.
a) It is usually terminated when all the stock has been sold.
Which of the following primarily governs the internal operations of labor unions? a) The Landrum-Griffin Act b) The Taft-Hartley Act c) The Employment-at-Will Doctrine d) The Wagner Act
a) The Landrum-Griffin Act
An agency relationship: a) can be created only for a lawful purpose. b) cannot be formed by implied authority. c) cannot be created by ratification. d) can be formed only by contract.
a) can be created only for a lawful purpose.
In a _____, partners divide the profits and management responsibilities and share unlimited personal liability for the debts. a) general partnership b) franchise c) business trust d) limited partnership
a) general partnership
An agent who feels that he or she is not being properly compensated, especially when working on commission,: a) can enact a constructive trust. b) can demand an accounting. c) cannot withhold performance of duties. d) can use right of avoidance.
b) can demand an accounting.
Which of the following statements is true of limited partnerships? a) All the partners in a limited partnership play an active role in the management of the business. b) If a general partner dies, a limited partnership is typically unaffected. c) Limited partners pay taxes on their share of the profit in a business. d) Limited partners assume unlimited personal liability for a partnership's debts.
c) Limited partners pay taxes on their share of the profit in a business.
The first major piece of federal legislation adopted explicitly to encourage the formation of labor unions and provide for collective bargaining was the _____ Act. a) Taft-Hartley b) Landrum-Griffin c) Wagner d) Omnibus Crime Control and Safe Streets
c) Wagner
An agent who makes an unauthorized agreement has failed to meet the duty of _____. a) cooperation b) performance c) obedience d) accounting
c) obedience
A cell phone business is an example of a
distributorship.
Americans with Disabilities Act (ADA)
preventing employers from discrimination against employees and applicants with disabilities.ADA attempts to attain this objective by requiring that employers make reasonable accommodations to the known physical or mental disabilities of an otherwise qualified person with a disability unless the necessary accommodation would impose an undue burden on the employers business. Disabled is defined as: 1. Has a physical or mental impairment that substantially limits one or more major life activities 2. Has a record of such impairment 3. Is regarded as having such an impairment.
Authorized Acts
principal is liable only if the agent has authority to act on the principal's behalf
Equal Pay Act of 1963
prohibits any employer from discrimination within any establishment between employees on the basis of sex by paying wages to employees in such establishment at a rate less than the rate at which he pays to employees of the opposite sex... for equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions. 4 defenses under EPA 1. A bona fide seniority system 2. A bona fide merit system 3. A pay system based on quality or quantity of output 4. Factors other than sex.
Agency
relationship between a principal and an agent.
Joint Venture
relationship between two or more persons or corporations that is created for a specific business undertaking.
Duty of Obedience
requires employee to follow the reasonable orders and rules of the employer; requires agent to carefully obey the instructions of the principal
The Employee Retirement Income Security Act of 1974 (ERISA):
requires that private employers keep employees informed about voluntarily established pension and health plans.
Employment-at-will-doctrine
says an employee may quit and an employer may fire an employee at any time and for any reason. There are many exceptions to the at-will doctrine, but it is the most basic U.S. employment law
Currently no federal legislation that prohibits discrimination based on ________. Only ____ states have laws protecting against it.
sexual orientation 21
Prima Facie
'at first view", evidence is sufficient to raise a presumption that discrimination occurred.
Disparate Treatment
(intentional discrimination) occurs when an employee is treated differently on the basis of being a member of a protected class. 3 step process: 1. Plaintiff must demonstrate a prima facie case of discrimination 2. Defendant must articulate a legitimate, nondiscriminatory business reason for the action 3. Plaintiff must show that the reason given by the defendant is mere pretext
Disparate Impact
(unintentional discrimination) occurs when an employer sets a requirement for employment that inadvertently precludes large numbers of a protected class from employment in a particular job.
Hostile Work Environment
- a plaintiff must demonstrate: a) He or she suffered intentional, unwanted discrimination because of his or her sex b) The harassment was severe or pervasive c) The harassment negatively affected the terms, conditions, or privileges of his or her work environment d) The harassment was both subjectively and objectively unwelcome e) Management knew about the harassment or should have known, and did nothing to stop it.
Rights and Remedies of the principal
1. Constructive Trust 2. Avoidance 3. Indemnification
Agency by Implied Authority
Agency formed by implication, through conduct of parties
Agency agreements usually ______ need to be in writing
do NOT
Title VII
A portion of the Civil Rights Act of 1964 that prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on race, color, religion, sex, or national origin for employers with 15 or more workers.
Principal's Tortious Conduct
1. A principal who directs the agent to commit a tort is authorizing the agents unlawful behavior and thus is liable for any damages caused by the tort. Similarly the principal who ratifies an agents tortious act knowing that the agent acted illegally is liable, even if she does not condone the agents conduct 2. If the principal fails to provide proper instruments or tools or gives inadequate instructions to the agent concerning the necessity to employ competent agents, the law holds the principal liable to a third party for negligent hiring of an agent. If an agent commits a tort against a customer, the customer often argues that the principal is liable because she should have taken more care in hiring the agent.
2 exceptions to agency agreements in writing
1. Agreement must be in writing whenever an agent will enter into a contract that the statute of frauds requires to be in writing 2. Agreement must be in writing whenever an agent is given power of attorney
If an agent has misrepresented herself, the third party has two options:
1. Cancel the contract with the principal and be compensated for any money lost 2. Affirm the contract and sue the principal to recover damages
Principal Duties
1. Compensation 2. Reimbursement and indemnification 3. Cooperation 4. Safe working conditions
Wagner Act
1935; protected the rights of most workers in the private sector to organize labor unions, to engage in collective bargaining, and to take part in strikes and other forms of concerted activity in support of their demands.
Primary boycotts
A boycott against an employer with whom the union is directly engaged in a labor dispute.
Joint Stock Company
A company made up of a group of shareholders. Each shareholder contributes some money to the company and receives some share of the company's profits and debts.
Limited Partnership
A partnership with one or more general partners and one or more limited partners.
Disclosed Principal
A principal whose identity is known to a third party at the time the agent makes a contract with the third party.
Expressed Agency
Agency formed by making written/oral agreement (most common type)
Apparent Agency (agency by estoppel)
Agency that arises when a principal creates the appearance of an agency that in actuality does not exist.
Agency by Ratification
Agency that exists when individual misrepresents himself/herself as agent for another party, and principal accepts/ratifies unauthorized act
Landrum-Griffin Act of 1959
Also known as the Labor Management Reporting and Disclosure Act, this law aimed at protecting union members from possible wrongdoing on the part of their unions
Employer-Employee Relationship
Employer hires employee to perform certain tasks (physical service); employer has right to control conduct of employees
Employer-Independent Contractor Relationship
Employer hires persons (other than employee) to conduct some sort of task; employer has no control over details of conduct of independent contractor
Public Policy Exception
Exception to doctrine of employment-at-will, holding that employees cannot be fired for fulfilling legal obligations or for exercising legal rights.
Fair Labor Standards Act (FLSA)
Federal law that establishes a minimum wage and requirements for overtime pay and child labor Specified amount periodically raised by Congress
Advantages of a partnership
Formation is easy Income from the business is taxed as individual income for each partner Business losses can be deducted from taxes
Picketing
Individuals who place themselves outside an employers place of business for the purpose of informing a passerby of the facts of a labor dispute.
Limited Liability Company (LLC)
It combines the tax advantages and management flexibility of a partnership with the limited liability of a corporation.
Disadvantages of a partnership
Partners are personally liable for firms debts
Disadvantages of a sole proprietorship
Personally liable for all losses Funding is limited to personal funds and loans
Informational Picketing
Picketing designed to truthfully inform the public of a labor dispute between an employer and the employees.
Which of the following is excluded from a franchise agreement?
Price at which the franchisee sells the goods
Agency by Ratification Requirements
Principal must have complete knowledge of all material facts regarding contract Principal must ratify entirety of agent's act
Which of the following categories of employees is covered under the Fair Labor Standards Act (FLSA), which states that employees who work more than 40 hours in a week be paid no less than one and one-half times their regular wage for all the hours they work beyond 40 during a given week?
Production employees who produce goods for interstate commerce
Advantages of a corporation
Profits are taxed as income to the shareholders, not the partners It is easy to raise capital by issuing stock Shareholders have limited liability
Which of the following statements is true about a limited liability company (LLC)? a) It is required to allocate profits and losses in proportion to ownership interests. b) It combines the tax advantages and management flexibility of a partnership with the limited liability of a corporation. c) Members of an LLC must be citizens or permanent residents of the United States. d) The members of a limited liability company need not report their share of the profits and losses on their personal tax returns.
b) It combines the tax advantages and management flexibility of a partnership with the limited liability of a corporation.
Which of the following is true of the actual notice of termination? a) To terminate an agency agreement, it must always be in writing, irrespective of how the agent's authority was granted. b) It must be given to third parties who have had business interactions with the agent. c) It usually consists of publication in a generally circulating newspaper for the area where the agency agreement existed. d) Parties not directly related to an agency agreement typically receive actual notice.
b) It must be given to third parties who have had business interactions with the agent.
MNM Inc. manufactures cement blocks and requires hiring people for heavy physical work such as carrying the cement blocks, loading them in the trucks, etc. Since the work involves heavy physical activity, MNM hires only male employees. On what basis could the company defend itself had a case of discrimination on the basis of sex been filed against the company? a) On the basis of disparate treatment b) On the basis of bona fide occupational qualification defense c) On the basis of merit defense d) On the basis of seniority system defense
b) On the basis of bona fide occupational qualification defense
Which of the following can be a bona fide occupational qualification defense (BFOQ)? a) Excluding white men from applying for jobs in quarries b) Requiring a candidate to be female for modeling female clothing c) Hiring only U.S. nationals since customers prefer to deal only with them d) Avoiding hiring females to avoid the expense of creating different restrooms for men as well as women
b) Requiring a candidate to be female for modeling female clothing
Which of the following is true of the principal's liability for an independent contractor's actions? a) The principal will not be held responsible for any damages caused due to extremely hazardous activities undertaken by the independent contractor. b) The employer cannot escape liability for an independent contractor's tort, if the employer directs the contractor to commit the tort. c) The employer can escape strict liability by hiring an independent contractor to complete the tasks for her. d) An individual who hires an independent contractor is held liable for the independent contractor's tortious actions under the doctrine of "respondeat superior."
b) The employer cannot escape liability for an independent contractor's tort, if the employer directs the contractor to commit the tort.
A strike is: a) the complete prohibition of trade with a particular country. b) a temporary, concerted withdrawal of labor. c) the prohibition on employers from firing employees. d) a refusal to deal with, purchase goods from, or work for a business.
b) a temporary, concerted withdrawal of labor.
In a _____, the franchise operates under the franchisor's business name and is required to follow the franchisor's standards and methods of business operation. a) manufacturing arrangement b) chain-style business operation c) distributorship d) media franchise
b) chain-style business operation
A _____ is a person who has a duty to act primarily for another person's benefit. a) surety b) fiduciary c) guarantor d) conservator
b) fiduciary
Edward hires a lawyer to serve as his agent. The lawyer is disbarred later because he was engaged in a series of illegal cases. Under the given circumstances, the agency relationship is terminated due to: a) renunciation by the agent. b) impossibility. c) change in law. d) changed circumstances.
b) impossibility.
A _____ is best described as a partnership agreement in which company members hold transferable shares while all the goods of the company are held in the names of the partners. a) syndicate b) joint stock company c) business trust d) joint venture
b) joint stock company
A _____ is a relationship between two or more persons or corporations created for a specific business undertaking. a) business trust b) joint venture c) syndicate d) cooperative
b) joint venture
The public policy exception: a) provides that an implied employment contract may arise from statements the employer makes in public meetings. b) prohibits employers from firing employees engaged in activities that further the public interest. c) assumes that every employment contract contains an implicit understanding that the parties will deal fairly with one another. d) is limited to public activities such as serving on jury duty, doing military service, and filing for or testifying at hearings for workers' compensation claims.
b) prohibits employers from firing employees engaged in activities that further the public interest.
Under workers' compensation laws, _____. a) the employees are not allowed to the employee injury costs b) the covered workers injured on the job can receive financial compensation through an administrative procedure c) the injuries occurring on the way to and from the job are within the course of employment, for which damages may be recovered d) the only way workers can claim financial compensation is by suing their employer
b) the covered workers injured on the job can receive financial compensation through an administrative procedure
The Family and Medical Leave Act (FMLA) covers: a) the birth but not the adoption of a child. b) the placement of a foster child in an employee's care. c) public employers but not private employers. d) newly joined employees who have an experience of one month.
b) the placement of a foster child in an employee's care.
Under the Americans with Disabilities Act (ADA), if a charge has been filed with the state agency, an Equal Employment Opportunity Commission (EEOC) charge must be filed within _____ days of receiving notice of the termination of the state proceedings. a) 10 days b) 180 days c) 30 days d) 60 days
c) 30 days
Which of the following statements is true about a partnership? a) Partners are typically required to create a written agreement to establish a partnership. b) Partners are required to deduct business losses from their nontaxable income. c) Income from a business involving a partnership is taxed as individual income for each partner. d) In most cases, it is considered a separate legal entity from the business involved.
c) Income from a business involving a partnership is taxed as individual income for each partner.
Which of the following is true of agency law? A) It is standardized and is the same from state to state. b) It is included under the category of customary law. c) It is primarily state law. d) It is included under the category of federal law.
c) It is primarily state law.
At-will employment implies that: a) an employer can fire an employee even for an illegal reason. b) an employee has the right to decide whether to work or not to work. c) an employer can fire an employee without any reason. d) an employee is eligible to employment only if his or her ancestors have worked there.
c) an employer can fire an employee without any reason.
When an agent makes authorized expenditures in the course of working on behalf of the principal, and the principal refuses to pay the agent, the principal is violating his or her: a) duty of accounting. b) duty of performance. c) duty to reimburse. d) duty to compensate.
c) duty to reimburse.
joshua enters into an agreement with Cathy, an interior designer, to redo his house. Once Cathy has completed designing and decorating the house, she no longer has the authority to act on Joshua's behalf. Under the given circumstances, the agency terminated due to: a) impossibility. b) lapse of time. c) fulfillment of purpose. d) renunciation by the agent.
c) fulfillment of purpose.
Under the doctrine of "respondeat superior," the principal/employer holds _____, which is liability assigned without fault, for any harm the agent/employee causes while working for the principal. a) misrepresentation liability b) joint liability c) vicarious liability d) contributory liability
c) vicarious liability
According to the Occupational Safety and Health Act (OSHA), employers: a) in low-hazard industries such as retail and insurance must keep records of work-related injuries and illnesses. b) have a general duty to develop and enforce independent health and safety programs. c) with 11 or more employees must keep records of work-related injuries and illnesses. d) must provide reasonable leave periods for family-related health issues.
c) with 11 or more employees must keep records of work-related injuries and illnesses.
Principal-agent relationships are most significant for issues that are included in the category of ____ law
contract
In filing a Title VII claim of employment discrimination, an employee must file a charge with the EEOC within _____ days of the alleged discriminatory act. a) 120 b) 90 c) 10 d) 180
d) 180
The _____ outlaws the intentional interception of electronic communications and intentional disclosure or use of the information so obtained. a) End User License Agreement b) Electronic Communications and Transactions Act c) Electronic Communication and Transmission Act d) Electronic Communications Privacy Act
d) Electronic Communications Privacy Act
The _____ Act, passed in 1935, created a state system to provide unemployment compensation to qualified employees who lose their jobs. a) Unemployment Insurance Trust Fund Financing b) Fair Labor Standards c) Amended Unemployment Insurance d) Federal Unemployment Tax
d) Federal Unemployment Tax
Which of the following statements best defines a cooperative? a) It is a business organization governed by a group of trustees, who operate the trust for the beneficiaries. b) It is a partnership agreement in which company members hold transferable shares while all the goods of the company are held in the names of the partners. c) It is an investment group that comes together for the explicit purpose of financing a specific large project. d) It is an organization formed by individuals who usually pool their resources to gain an advantage in the market.
d) It is an organization formed by individuals who usually pool their resources to gain an advantage in the market.
Which of the following statements is true of a constructive notice? a) It is received by parties directly related to the agency agreement. b) It is rarely used to announce the termination of an agency agreement. c) It must be given to third parties who have had business interactions with the agent, and it directly informs them about the termination. d) It usually consists of publication in a generally circulating newspaper for the area where the agency agreement existed.
d) It usually consists of publication in a generally circulating newspaper for the area where the agency agreement existed.
In the context of discrimination based on sexual orientation, which of the following statements is true? a) The District of Columbia does not prohibit discrimination based on sexual orientation or gender identity. b) The Defense of Marriage Act allowed same-sex couples to enjoy the same rights as that enjoyed by other married couples. c) Section 2 of the Defense of Marriage Act specifies that every state "shall be required to give effect" to same-sex marriages granted by other states. d) There is currently no federal legislation that prohibits discrimination based on sexual orientation.
d) There is currently no federal legislation that prohibits discrimination based on sexual orientation.
When a breach of contract is caused by an agent's negligence, a principal: a) must enact a constructive trust. b) has a right of avoidance. c) cannot utilize tort remedies. d) has a right to indemnification.
d) has a right to indemnification.
Individuals who place themselves outside an employer's place of business for the purpose of informing passers-by of the fact(s) of a labor dispute are engaged in _____. a) primary boycotts b) embargo c) secondary boycotts d) picketing
d) picketing
Title VII of the Civil Rights Act of 1964: a) is divided into seven sections called titles. b) applies to employers who have less than 15 employees for at least 20 consecutive weeks. c) does not apply to Indian tribes and employment agencies. d) prohibits employers from firing employees on the basis of racial discrimination.
d) prohibits employers from firing employees on the basis of racial discrimination.
A durable power of attorney: a) grants the agent express authority only over specifically outlined acts. b) is terminated on the principal's death. c) allows the agent to conduct all business for the principal. d) specifies that the agent's authority is intended to continue beyond the principal's incapacitation.
d) specifies that the agent's authority is intended to continue beyond the principal's incapacitation
When an agent commits a crime: a) the principal cannot be held liable for the crime under any circumstance. b) he or she would be relieved from liability if the crime was committed within the scope of employment. c) he or she would be relieved from liability if the crime was committed to accomplish the objectives of the agency. d) the principal can be liable for the crime if he or she authorized the criminal act.
d) the principal can be liable for the crime if he or she authorized the criminal act.
Pregnancy Discrimination Act (PDA) of 1987
discrimination based on gender to include discrimination based on pregnancy. Temporarily disability caused by pregnancy must be treated the same as any other temporary disability.
Disadvantages of a corporation
double taxation Formalities are required in establishing and maintaining corporate form
Seniority System Defense
employees are given preferential treatment based on their length of service, may perpetuate past discrimination, such systems are considered bona fide and are not illegal if 1.The system applies equally to all persons 2. The seniority units follow industry practices 3. The seniority system did not have its genesis in discrimination and 4. The system is maintained free of any illegal discriminatory purpose.
Electronic Communication Privacy Act of 1986
employees privacy rights were extended to electronic forms of communication including email and cellular phones. ECPA outlaws the intentional interception of electronic communication and intentional disclosure or use of the information so obtained
Omnibus Crime Control and Safe Streets Act of 1968
employers cannot listen to or disclose the contents of private telephone conversations of employees. They may ban personal calls and monitor for compliance, as long as they discontinue listening to any conversation once they determined its personal.
Merit Defense
employment decisions were at least partially made based on test scores designed not to be discriminatory. 3 types of validation are acceptable: -Criterion related validity- relationship between test scores and objective criteria of performance. -Content validity- isolates some skill used on the job and directly tests that skill -Construct validity- a psychological trait needed to perform the job is measured
Age Discrimination in Employment Act (ADEA) of 1967
enacted to prohibit employers from refusing to hire, discharging, or discriminating in terms and conditions of employment against employees or applicants age 40 or older. Age is prohibited basis for discrimination. Applies to having 20 or more employees. Plaintiff shows that he or she; 1. Belongs to the statutorily protected class (those 40 or older) 2. Was qualified for the position held 3. Was terminated under circumstances giving rise to an inference of discrimination
Consolidated Omnibus Budget Reconciliation Act (COBRA)
ensures that employees who lose their jobs or have their hours reduced to a level at which they are no longer eligible to receive medical, dental, or optical benefits can continue receiving benefits for themselves and their dependents under the employer's policy. The employee must pay the premiums for the policy, plus up to a 2 percent administration fee, to maintain coverage up to 18 months, or 29 months if disabled. COBRA does not apply if: Employee fired for "gross misconduct"; or Employer decides to eliminate benefits for all current employees
Qualification
entails filing a certificate of authority or some similar document, and getting a business license, in each additional state in which the business plans to operate.
Employee Retirement Income Security Act (ERISA)
federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans
Manufacturing Arrangement
franchisor provides the franchisee with the formula or necessary ingredient to manufacture a product.
Sole Proprietorship
going into business on your own
Mitchel, a real estate agent, buys a property that his principal, Henry, wanted to buy. If Mitchel is aware that Henry wanted to buy the property, then the court will
grant Henry the legal rights for the property
Constructive Notice
how the termination of an agency agreement is generally announced. Usually consists of publication in a generally circulating newspaper for the area where the agency agreement existed.
Insanity
if a principal or agent becomes insane, the agency relationship is finished. Some states have modified this law so that the agency contract still exists unless the person has been adjudicated insane.
Lapse of Time
if an agency agreement specifies that the relationship will exist for a certain amount of time, it will end when that time expires
Unauthorized Acts
if an agent has no authority to act on behalf of a principal but still enters into a contract with a third party, the principal is not bound to the contract unless the principal ratifies the agreement.
Bankruptcy
if the principal or agent files a bankruptcy petition, the agency relationship is generally no longer in existence, particularly if the agent is filing for bankruptcy and his or her credit is important to the agent relationship. "operation of law"
Death
if the principal or the agent dies, the agency relationship is automatically terminated. Even if one party is unaware of the other partys death, the relationship no longer exists
Partially Disclosed Principal (unidentified principal)
if the third party is aware of the principal's existence but not his or her identity
Respondeat Superior
let the superior speak, applies in the context of the principal/employer-agent/employee relationship.
When partners have created a _____, all the partners assume liability for one partner's professional malpractice, but only to the extent of the partnership's assets.
limited liability partnership
Defense of Marriage Act (DOMA)
signed by Clinton in 1996 and prevented same sex couples who marriages were recognized by their home state from receiving hundreds or benefits avaiable to other married couples under federal law
Agency Relationship
the agent is authorized to act for and on behalf of the principal, who hires the agent to represent him or her. 2 criteria: 1. They can be created only for a lawful purpose 2. The person who is to act as an agent has contractual capacity
Franchise Agreement
the contractual arrangement between a franchisor and franchisee that spells out the duties and responsibilities of both parties aka payment to the franchisor, location of the franchise, restrictions the franchisee must follow, and method of termination of the franchise.
Chain style business operations
the franchise operates under the franchisors business name and is required to follow the franchisors standards and methods of business operation.
Distributorships
the franchisor manufactures a product and licenses a dealer to sell it in an exclusive territory
When the principal is disclosed:
the principal is liable for the agreements made w the third party
if a principal is partially disclosed:
the third party would be aware of the principal's existence but not his/her identity
Implied covenant of good faith and fair dealing exception
this exception assumes that every employment contract contains an implicit understanding that the parties will deal fairly with one another.
Sexual Harassment
unwelcome sexual advances, requests for sexual facors, and other verbal or physical conduct of a sexual nature, that implicitly or explicitly makes submission a term or condition of employment; makes employment decisions related to the individual dependent on submission to or rejection of such conduct; or has the purpose or effect of creating an intimidating, hostile, or offensive work environment.
Quid Pro Quo
when a supervisor makes a sexual demand on someone of the opposite sex and this demand is reasonable perceived as a term or condition of employment.