Legal Environments of Business (Mod 2) Flashcards | Quizlet

Agency Standard

The principal authorizes the agent to act on behalf of the principal, subject to the principal's control

Obey Reasonable Instructions

Agents may not ignore how principal wants activities done

Exercise care and skill

Agents held to standard of acting with ordinary care and skill (what is common for the role)

Communicate information

Must report new information relevant to agency that agent knows or should know would be of interest to the principal

Duty account for funds and property

Agents must return money and/or property or explain why it cannot be returned

Commingling

The mixing of funds belonging to one party with funds belonging to another party

Principals

Can do anything through agents that they can do themselves

Capacity

One's ability to enter into binding contracts

Fiduciary duties

a legal and ethical requirement for a decision maker (agent) to abide by the best interest of the recipient (principal) of that decision.

Loyalty

complete honesty in dealing with the principal

Embezzlement

Obtaining and misappropriating property with the intent to deprive the principal

duty to compensate

Baseline assumption is you pay your agent

duty to reimburse and indemnify

Agent expenses or losses in the course of authorized activity must be covered

Duty to keep accounts

The principal must keep records necessary to determine the compensation due an agent.

Breach

is the violation of an agreement that creates litigation claim

What authority exists under the Agency Standard?

The principal authorizes the agent to act on behalf of the principal, subject to the principal's control

Under what standard may agents not ignore how the principal wants activities done?

Obey Reasonable Instructions

What standard of performance is required under 'Exercise care and skill'?

Acting with ordinary care and skill (what is common for the role)

Under 'Communicate information', what must an agent report?

New information relevant to agency that agent knows or should know would be of interest to the principal

What obligation is established by the 'Duty account for funds and property'?

Agents must return money and/or property or explain why it cannot be returned

What is the legal definition of commingling?

The mixing of funds belonging to one party with funds belonging to another party

What scope of actions can principals perform through agents?

Can do anything through agents that they can do themselves

What is defined as one's ability to enter into binding contracts?

Capacity

What records must a principal keep under the 'Duty to keep accounts'?

Records necessary to determine the compensation due an agent

What is embezzlement in an agency relationship?

Obtaining and misappropriating property with the intent to deprive the principal

workers compensation

 insurance program that provides medical care, wage replacement, and rehabilitation benefits to employees who suffer work-related injuries or illnesses 

Strict Liability

a defendant is liable for committing an action, regardless of their intent or mental state when committing the action 

OSHA

Federal agency, whose general duty is to protect against the risk of severe bodily harm or death in the workplace  

Family Medical Leave Act

Greater job security to address serious personal or family health conditions

Fair Labor Standards Act

Federal law that established the federal minimum wage and overtime pay rules  

Collective Bargaining

negotiate for better environment/pay/etc

National Labor Relations Act

Recognizes worker’s right to organize

concerted activities

when employees act or discuss improvements to their pay, hours, safety, or working conditions

Equal Pay act of 1963

Prohibits sex discrimination in pay

piecework

a system of compensation where workers are paid a fixed rate for each individual unit, item, or task they produce or complete,

Title VII of the civil rights act 1964

protects individuals of any race, color, religion, sex, or national organization from discrimination in the workplace

disperate treatment

intentional discrimination where an employer, landlord, or service provider treats an individual differently or less favorably than others because of a protected characteristic

disparate impact

A seemingly neutral policy that has an oversized effect on a certain protected class

Bona fide occupational qualifications (BFQO defense)

a narrow legal exception that lets employers lawfully hire or restrict employees based on protected characteristics—such as sex, religion, national origin, or age—when that trait is genuinely necessary for the normal operation of the business