BLAW 371 Final exam

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61 Terms

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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).

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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.

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Agent

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

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Duties of Agents

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

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Duties of Principals

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

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Employee vs. Independent Contractor

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

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Gratuitous Agency

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

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Power of Attorney

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

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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.

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Ratification (Agency)

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

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Vicarious Liability

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

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Creation of Agency

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

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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).

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Termination of Agency

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

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Equal Pay Act of 1963

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

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Title VII of the Civil Rights Act of 1964

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

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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.

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Age Discrimination in Employment Act (ADEA)

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

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Pregnancy Discrimination Act

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

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Americans with Disabilities Act & Rehabilitation Act

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

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Disparate Treatment

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

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Disparate Impact

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

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Prima Facie Case (Discrimination)

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

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Affirmative Action

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

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Reverse Discrimination

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

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EEOC (Equal Employment Opportunity Commission)

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

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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).

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Executive Order 11246

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

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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.

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Types of Agents

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

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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.

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Are corporate officers considered agents of the corporation?

true

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What is an agent in business law?

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

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Employees who deal with third parties are of their employers.

agents

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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.

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Can an agency relationship exist without consideration?

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

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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.

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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.

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

employee

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What is agency by ratification?

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

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

Reasonable diligence and skill in selling.

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

The duty of performance.

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

The duty of loyalty.

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When does an ordinary power of attorney terminate?

Upon the principal’s death or incapacity.

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

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

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

An assignment.

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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.

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

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

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

A protected class.

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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.

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Disparate-impact discrimination involves discriminatory practices.

unintentional

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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.

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

Yes. Title VII recognizes same-gender harassment claims.

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

disabled

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Which federal agency enforces Title VII compliance?

The Equal Employment Opportunity Commission (EEOC).

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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.

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

disparate-impact

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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.

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Refusing to hire someone because of ethnicity is discrimination.

disparate-treatment (intentional)

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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.

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Are states immune from private ADEA suits in federal court?

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