BLAW 371 Final exam

Agency

A consensual fiduciary relationship in which one party (the agent) agrees to act on behalf of and under the control of another (the principal).

Principal

The person who authorizes an agent to act on their behalf and is bound by the agent’s actions within the scope of authority.

Agent

A person authorized to act for a principal; owes fiduciary duties of loyalty, obedience, accounting, performance, and notification.

Duties of Agents

Performance, loyalty, obedience, accounting, and notification to the principal.

Duties of Principals

Compensation, reimbursement/indemnification, cooperation, and safe working conditions for the agent.

Employee vs. Independent Contractor

Employees are subject to employer control over details of work; independent contractors control the manner and means of performance.

Gratuitous Agency

An agency relationship in which the agent acts without receiving compensation; duties still apply.

Power of Attorney

A written authorization giving an agent express authority to act on behalf of a principal, often in financial or medical matters.

Agency by Estoppel

An agency created when a principal’s conduct causes a third party reasonably to believe that another person is the principal’s agent.

Ratification (Agency)

A principal’s later approval of an act performed by an agent who lacked authority at the time of the transaction.

Vicarious Liability

Legal responsibility imposed on a principal/employer for the wrongful acts of an agent/employee acting within the scope of employment.

Creation of Agency

Can arise by agreement, ratification, estoppel, or operation of law; no formal writing required unless statute of frauds applies.

Writing Requirements for Agency Agreement

Generally none, but required when the agent is to perform a contract that must itself be in writing (e.g., real estate).

Termination of Agency

Occurs by act of parties (mutual agreement, lapse of time, purpose achieved) or by law (death, insanity, bankruptcy, war).

Equal Pay Act of 1963

Requires equal pay for men and women performing substantially equal work in the same establishment.

Title VII of the Civil Rights Act of 1964

Prohibits employment discrimination based on race, color, religion, sex, or national origin.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, or other conduct of a sexual nature that affects employment or creates a hostile work environment.

Age Discrimination in Employment Act (ADEA)

Protects individuals 40 years or older from employment discrimination based on age.

Pregnancy Discrimination Act

Amends Title VII to prohibit discrimination on the basis of pregnancy, childbirth, or related medical conditions.

Americans with Disabilities Act & Rehabilitation Act

Prohibit discrimination against qualified individuals with disabilities and require reasonable accommodations.

Disparate Treatment

Intentional discrimination; an individual is treated less favorably because of a protected characteristic.

Disparate Impact

Unintentional discrimination; a neutral policy disproportionately affects a protected group without business necessity.

Prima Facie Case (Discrimination)

The initial burden on a plaintiff to show membership in a protected class, qualification, adverse action, and differential treatment.

Affirmative Action

Policies that take positive steps to remedy past discrimination or promote diversity in employment or education.

Reverse Discrimination

Claims by majority-group members that they are discriminated against by affirmative action policies favoring minorities.

EEOC (Equal Employment Opportunity Commission)

Federal agency that enforces anti-discrimination laws, investigates complaints, and may sue employers.

EEOC Filing Time Limits

Charge must usually be filed within 180 days of the alleged discrimination (300 days if a state agency also enforces the law).

Executive Order 11246

Requires federal contractors to adopt affirmative action plans and prohibits employment discrimination by those contractors.

Harris v. Forklift Systems, Inc. (1993)

Supreme Court case holding that a hostile work environment exists without showing psychological injury; focus is on whether conduct is severe or pervasive.

Types of Agents

Include general agents, special agents, subagents, brokers, factors, and universal agents depending on scope and purpose.

Employee–Employer Agency Relationship

When an employee acts within the scope of employment, the employer is the principal and may be liable for the employee’s acts.

Are corporate officers considered agents of the corporation?

true

What is an agent in business law?

A person authorized to act on behalf of a principal in dealings with third parties.

Employees who deal with third parties are of their employers.

agents

Does an independent contractor work under the same right-to-control test as an employee?

No. Independent contractors are not subject to the employer’s detailed control over the manner and means of performance.

Can an agency relationship exist without consideration?

Yes. Consideration is not required to form an agency relationship.

Is a principal liable for contracts made by an agent acting outside the agent’s scope of authority?

No. The principal is not liable for contracts outside the agent’s actual or apparent authority.

When a corporate officer signs a contract for the corporation, what is the officer’s role?

The officer acts as the corporation’s agent and has authority to bind it.

If an employer dictates the methods, goals, and standards of a worker’s tasks, that worker is most likely a(n) .

employee

What is agency by ratification?

When a purported principal approves an unauthorized act done on their behalf, thereby creating agency retroactively.

Absent a specified sales target, what performance level must a sales agent achieve?

Reasonable diligence and skill in selling.

Which fiduciary duty requires an agent to act with reasonable care and competence?

The duty of performance.

A salesperson who pockets side payments from customers breaches which duty?

The duty of loyalty.

When does an ordinary power of attorney terminate?

Upon the principal’s death or incapacity.

After ratifying a contract, can a principal rescind only part of it?

No. Ratification is all-or-nothing; partial rescission is totally unsuccessful.

Transferring the right to receive payment under a contract to a bank is called what?

An assignment.

Does the Civil Rights Act of 1964 prohibit job discrimination at every stage of employment?

Yes. Discrimination is barred in hiring, promotion, discharge, and other employment decisions.

Must a discrimination victim sue an employer before filing with the EEOC?

No. The victim must first file a charge with the EEOC.

To sue for intentional discrimination, a plaintiff must be a member of what?

A protected class.

Is proof of discriminatory intent required to establish a prima facie Title VII case?

No. Intent is presumed once the prima facie elements are shown.

Disparate-impact discrimination involves discriminatory practices.

unintentional

Does the Equal Pay Act require that all women be paid the same as all men at a company?

No. It requires equal pay for equal work, not across-the-board gender equality.

Can an employer be liable for same-sex sexual harassment by an employee?

Yes. Title VII recognizes same-gender harassment claims.

Under the ADA, a person with a physical impairment that substantially limits major life activities is considered .

disabled

Which federal agency enforces Title VII compliance?

The Equal Employment Opportunity Commission (EEOC).

For a prima facie discrimination case, a plaintiff must show membership in a protected class and what else?

That they were qualified for the position and suffered an adverse employment action.

Failing an employment test that unintentionally screens out a protected class is an example of discrimination.

disparate-impact

To prove disparate impact, a plaintiff compares the employer’s hiring rate to what benchmark?

The percentage of qualified members of the protected class in the local labor market.

Refusing to hire someone because of ethnicity is discrimination.

disparate-treatment (intentional)

Is paying a higher-performing female employee more than a lower-performing male employee discrimination?

No. A merit system tied to job performance is a legal defense under the Equal Pay Act.

Are states immune from private ADEA suits in federal court?

Yes. States generally have Eleventh Amendment immunity from such suits.