Law exam 4

_______ is when an agency is created because the actions of the principal may lead one to reasonably believe that the presumed agent has the authority to act for the principal.

Agency by estoppel

Carl works at a unionized workplace where the collective bargaining agreement requires all employees to pay union dues or agency fees. He refuses to join the union, which demands he pay an agency fee, part of which would be used for political purposes. Assuming this is not a right-to-work state:

Carl must pay agency fees, but is not supposed to have to pay fees to support political activities

In Bearden v. Wardley Corp., where Bearden sued Wardley because one of its agents, Gritton, bought a house from her and then cheated her on the transaction, the court held that:

Gritton and Wardley violated their fiduciary obligations to Bearden, so both are liable

In France v. Southern Equipment Co., where France, after falling off a roof, sued Southern Equipment Co. who had employed Quality Metal Roof, a company that contracted with France's employer, Royalty Builders, to build them a new metal roof for exposing him to the inherently dangerous job of roofing, the appeals court held that:

Southern Equipment was not liable because they did not engage Royalty Builders to do the work and they had no control over Royalty Builders

In Zambelli Fireworks Manufacturing Co. v. Wood, where Zambelli sued Wood for violating the noncompete agreement in his contract, the appeals court held that:

Wood's specialized knowledge from working at Zambelli in addition to customer goodwill constituted legitimate business interests that Zambelli had a right to protect through a reasonable restrictive covenant

In Yim v. J's Fashion Accessories, Inc., where J's Fashion sued Yim for failing to pay for goods he bought under the name Ho Tae and Yim denied liability on the grounds that he had been acting as an agent for Hosung Enterprise, Inc which also did business under the name Ho Tae, the courts held that:

Yim was liable because he never disclosed Hosung Enterprise, Inc. as the principal

A primary boycott is:

a strike against an employer whose collective bargaining agreement is in question

For the NLRB to oversee a representation election, at least what percent of employees must request an election?

a. 20% b. 50% c. 66.6% d. 75% e. none of the other choices ANSWER: e.

A collective bargaining agreement ends and the union and management continue to bargain for a new contract while the workers go on strike. Management hires new workers to replace the union workers on strike. By law, when the strike ends:

a. all union workers must be returned to their previous positions b. all replacement workers must be dismissed unless the union agrees to accept them c. the replacement workers must become union members and be paid union wages d. the new collective bargaining agreement must provide higher wages than the previous contract and the new wage level will apply to all workers e. none of the other choices are true ANSWER: e.

Employment-at-will:

a. allows employees to quit their jobs for any reason at any time b. allows employers to discharge employees for any reason at any time subject to contract obligations c. has been restricted by the courts or legislatures in some states that recognize some public policy limitations on the employer's right to fire an employee d. a and b e. a, b and c ANSWER: e.

If the National Labor Relations Board determines that an employer has committed an unfair labor practice, which of the following remedies may it impose on the employer?

a. force the employer to provide back pay for lost wages b. issue an order requiring the employer to bargain with the union c. issue a cease and desist order against the employer d. post notices in the workplace of the employer's unfair practices e. any of the other choices ANSWER: e.

A disclosed principal is a principal whose identity is:

a. known to the agent b. unknown to the agent c. unknown to third parties to contracts entered into with the agent d. known to partners e. none of the other choices ANSWER: e.

Which of the following is not a duty owed by the agent to the principal:

a. loyalty b. reasonable care c. accounting d. notification e. all of the other choices are required ANSWER: e.

Which of the following would lead to termination by operation of law for an agency:

a. the principal dies b. the agent dies c. the subject matter of the agency is destroyed d. all of the other specific choices are correct e. none of the other specific choices are correct ANSWER: d.

Which of the following actions by workers is subject to court action, such as an injunction being issued against the workers:

a. when workers attempt to get other workers to join in picketing a company b. when a union pays unemployment benefits to striking workers c. when workers refuse to sign a contract, as a condition of employment, that they will not join a union d. when workers talk to the media about the details of a labor dispute at a company e. none of the other choices is likely to be subject to court involvement ANSWER: e.

__________is the authority given by the principal to the agent.

actual authority

An auctioneer is an example of a(n):

agent and independent contractor

A place of employment where all employees are represented by a union and most employees are union members, but non-union workers must pay fees to the union, is called:

an agency shop

When you go on vacation you give your neighbor authority to pick up your mail and watch for burglars for you. You tell the neighbor not to go into the house or let anyone else in. A fire on the hills threatens your house. The neighbor goes in to carry out valuables before the house burns. This action is:

an agency through operation of law

A(n)_______________is one in which employees are required to sign, as a condition of employment, an agreement that they will not recruit fellow employees for another company when they leave their current place of employment.

anti-raiding covenant

If over half of the employees at a workplace vote for union representation, the NLRB will:

certify the union as the exclusive bargaining agent for all employees in the bargaining unit

Before the Norris-La Guardia Act, federal courts:

could issue injunctions to stop labor strikes

In Ballalatak v. All Iowa Agriculture Association, where Ballalatak contended that he was fired for inquiring into whether the company was fulfilling its workers' compensation obligation and the general manager claimed he was fired for insubordination, the Iowa state supreme court held that Ballalatak:

could not sue for wrongful discharge because Iowa law does not protect an employee who advocates internally for another employee's workers' compensation claims

In Callison v. City of Philadelphia, where Callison was told that while on FMLA leave that he had to be at home during work hour unless he called to report where he would be going, he sued to protest the policy. The court of appeals held that the employer:

did not violate the FMLA by its policy

A grievance arbitration clause means:

disputes arising under a collective bargaining agreement must be resolved by an internal grievance procedure

A manager who runs all aspects of a hotel is most likely what kind of agent:

general agent

___________takes place when the principal behaves as if he has the intent of ratifying an unauthorized agreement.

implied ratification

The principal's duty to indemnify the agent means the principal must:

insure the agent against losses suffered during the course of authorized transactions

When there is an undisclosed principal, the agent is:

liable to the third party for the principal's nonperformance of the contract

Employees among the 10 percent highest paid, whose leave would cause "substantial and grievous economic injury to the operations of the employer":

may be denied FMLA coverage on a case-by-case basis

When an employer-employee relationship exists, employers:

may be liable for the torts committed by employees in the course of employment

Employees may be required to sign, as a condition of employment, an agreement that they will not leave the company and go to work for themselves or a competitor firm in a position that could inflict competitive injury on the employer. This is called:

noncompete agreement

In Armstrong v. Food Lion, the Armstrongs were beaten by employees of a grocery store. They sued the store. The South Carolina high court held that the store was:

not liable because the assaults were outside of the employment duties

In Guz v. Bechtel National, Guz was fired by Bechtel after 22 years of service. The company eliminated his position despite his good performance and no financial problems in the company. The California high court held that Guz could:

not sue due to employment at will

An agency may be established by:

operation of law or by oral agreement of the parties or by written agreement of the parties

Through an agency relationship, the agent becomes a representative of the:

principal

When liability is imposed on an employer for a tort committed by an employee, the liability is based on the rule of law known as:

respondeat superior

Traditionally, the chief difference between an agent and a servant (employee) was that the:

servant was generally not employed to represent a principal in business dealings

A company that has more than $25,000 worth of business with the federal government and does not publish and distribute a statement notifying employees that the use, distribution, or possession of drugs in the workplace is prohibited would be in violation of:

the Drug-Free Workplace Act

An unfair labor case is filed with the National Labor Relations Board and goes before an administrative law judge for resolution. If one of the parties is unhappy with the decision of the judge, they may appeal to:

the National Labor Relations Board

"Yellow-dog" contracts, in which employees agree not to join a union as a condition of employment, were made unlawful by:

the Norris-La Guardia Act

In Long v. Superior Senior Care, Long was issued on the job and filed for workers' compensation. Superior contended that she was an independent contractor so it was not responsible for such assistant. The Arkansas high court held that:

the conditions of the job showed that Superior maintained little control, so Long was an independent contractor not due workers' compensation

A lockout occurs when:

the employer refuses to permit employees to work until a labor dispute is settled

A principal's ratification is:

the principal's acceptance of responsibility for an agent's activities

In general, the NLRB and the courts will not permit outside union organizers access to:

the property of a company opposing unionization

In Teamsters Local Union No. 523 v. National Labor Relations Board, where a sales representative complained of unfair labor practices after he was demoted by the union when his employer consolidated its distribution so that the union would represent all distribution workers, rather than only some, the U.S. Court of Appeals held that:

the union and employer were discriminating against the employee in a way that encouraged union participation

When liability is imposed on the principal for the unauthorized torts of an agent, it is called:

vicarious liability

In Cove Management v. AFLAC, Galgano, an independent contractor who solicited insurance business for AFLAC, rented office space from Cove under AFLAC's name. When Galgano defaulted on payments, Cove sued AFLAC contending that Galgano was its agent when he rented the office, so AFLAC was liable. The appeals court held that AFLAC:

was not obligated to the lease because Galgano did not have apparent authority to sign a lease that would bind AFLAC

Refer to Fact Pattern 16-1. After Pierre slips on the grape skins, which of the following is most likely to provide him with benefits for his injuries? He may file a:

workers' compensation claim for benefits

A contract signed by a worker agreeing not to join a union is called a(n):

yellow-dog contract

You post a notice at school that you will sell your laptop computer for $600. A buyer comes by your room to look at it while you are gone and your roommate sells it for $500, thinking you would be happy with that price, which you did not authorize.

you can accept the deal by express or implied ratification