BUSINESS LAW EXAM

Agency

A relationship where one party (the agent) represents another (the principal) in forming legal relations.

Agent

A person authorized to act on behalf of another.

Principal

A person who permits another to act on their behalf.

Law of Agency

The law governing the agent-principal relationship, derived from tort and contract law.

Agent–Principal Relationship

The connection where the agent acts on behalf of the principal.

Outsider–Principal Relationship

The relationship between the principal and a third party with whom the agent conducts business.

Creation of Agency Relationship

Usually arises by contract, authorizing the agent to act and agreeing for remuneration.

Conduct-Based Agency

A relationship formed through actions that create a reasonable belief of agency without formal agreement.

Express Authority

Authority given explicitly by the principal, either orally or in writing.

Implied Authority

Authority inferred from the situation or conduct, not explicitly stated.

Apparent Authority

Authority that an agent appears to have based on the principal's conduct.

Agency by Estoppel

Created when a principal’s actions lead third parties to believe an agency relationship exists.

Agency by Ratification

When a principal adopts actions taken by an agent without authority.

Fiduciary Duty

The duty an agent owes the principal to act in good faith and avoid conflicts of interest.

Termination of Agency Agreement

Can occur by law or mutual agreement, requiring notification to third parties.

Employment Law

Laws regulating employment relationships, often based on common law with additional legislation.

Independent Contractor

A worker not considered an employee, such as a doctor or lawyer.

Dependent Contractor

A contractor who is economically dependent on one employer.

Employee Rights

Statutory benefits employees are entitled to, like holidays and overtime.

Tort Liability

Employers are liable for employees' actions during employment, not for independent contractors.

Human Rights Commission

Enforces human rights laws and investigates discrimination complaints.

Prohibited Grounds of Discrimination

Includes race, marital status, disability, religion, sex, age, and sexual orientation.

Adverse Effects Discrimination

When a neutral rule has a discriminatory impact.

Bona Fide Occupational Requirement (BFOR)

A valid job requirement that may justify discrimination for legitimate reasons.

Offer of Employment

Must include job details and be reasonably certain to be legally binding.

Employment Contract

A legal agreement between employer and employee, can be fixed-term or indefinite-term.

Just Cause

A valid reason for terminating an employee without notice.

Dismissal for Just Cause

Occurs due to serious misconduct or habitual neglect of duty.

Dismissal for Other Causes

Includes harassment or policy violations; misconduct must significantly impact the employment relationship.

Without Just Cause

Employer must provide notice or pay instead of notice when terminating without cause.

Reasonable Notice

Time given for an employee to find new employment, cannot be reduced arbitrarily.

Constructive Dismissal

Substantial changes to a contract by the employer without consent, allowing for legal action.

Wrongful Dismissal

Legal claim by an employee for being dismissed without cause or proper notice.

Guarantee

A contract where a guarantor promises to pay a debt if the debtor defaults.

Trustee in Bankruptcy

A licensed professional managing bankruptcies and proposals under the Bankruptcy and Insolvency Act.

Insolvent

A person or business unable to meet financial obligations.

Bankruptcy

Legal process transferring assets to a trustee for liquidation, allowing a fresh start.

Real Property

Land or real estate, including buildings and legal rights associated with it.

Tangible Property

Physical items like furniture and vehicles.

Intangible Property

Non-physical property like patents and copyrights.

Patent

Legal monopoly to make, use, or sell an invention.

Copyright

The right to prevent others from copying original works.

Trademark

A mark used to distinguish goods or services, can be registered or unregistered.

Bailment

Temporary transfer of possession of personal property.

Lease

Legal contract granting possession of property for a specific period.

Sole Proprietorship

A business organization owned by one individual without legal distinction from the owner.

Partnership

A business carried on by two or more persons with an intent to make a profit.

Limited Partnership

A partnership with at least one general partner with unlimited liability.

Corporation

A distinct legal entity providing liability protection to shareholders.

Shareholder

A person who owns shares in a corporation.

Joint Venture

A collaborative business arrangement for a specific project.