BLaw Exam 3 Part 5

What are the two main parties of an Agency?

Principal & Agent

How can an Agency arise?

Agency arises when one person (the agent) acts for the benefit of another person (the principal)

How can an Agency be formed?

Agency may be formed by express contract or by implication – primary requirement is the agent’s indication of consent that he or she will act for the principal’s benefit and under the principal’s control

What are some examples of agency?

Power of Attorney

Employment

Business Entities

What are the duties of Agents and what do those duties mean?

1. Duty of Loyalty: Always act in the best interest of the person or organization you serve, avoiding conflicts of interest.

2. Duty to Obey Instructions: Follow directions from those in authority within your organization or relationship.

3. Duty to Exercise Reasonable Care and Skill: Do your job competently and carefully, using the knowledge and skills you have.

4. Duty to Communicate: Share important information clearly and promptly with relevant people.

5. Duty to Account: Be able to explain and justify your actions, decisions, or management of resources to those who need to know.

What is the difference between Embezzlement and Conversion?

Embezzlement: It is a crime. An agent steals or misuses the principals’ assets for their own benefit.

Conversion: It is a tort. Someone wrongfully takes or uses another person's property without permission.

What are the duties of Principals?

1. The Duty to Compensate: Pay for what's owed or fix what's broken.

2. The Duty to Reimburse and Indemnify: Pay back for expenses or protect from financial harm.

3. The Duty to Keep Accounts: Keep track of money and transactions.

How can agencies terminate?

By Agreement (will of the parties)

By Operation of Law

By Implied Termination

What obligations are principals liable for?

Contracts and Negligence of the agent.

What obligations are agents liable for?

Torts and Crimes

What is the difference between an employee and an independent contractor?

“Degree of Control”

Employee: Controlled by their employer for what they do and how they do it.

Independent Contractor: Controlled by their employer for the outcome, but have freedom in how they achieve it.

What is employment at will and what does it mean?

Doctrine that allows employers to fire an employee who was not hired for a specific term (at-will employees) for any reason or employees can quit their jobs at any time.

What laws limit employment at will? To what employers do these laws apply? What do the laws basically say?

1. Family and Medical Leave Act (FMLA): This law lets eligible employees take time off work for family or medical reasons without losing their job. It applies to companies with 50 or more employees.

2. Title VII of the Civil Rights Act: This law stops employers with 15 or more employees from discriminating against workers based on factors like race, color, religion, sex, or national origin.

3. Age Discrimination in Employment Act (ADEA): This law prevents companies with 20 or more employees from discriminating against workers who are 40 years old or older.

4. Americans with Disabilities Act (ADA): This law applies to all companies regardless of size to give reasonable accommodations to qualified workers with disabilities and stops them from discriminating based on disabilities.

What is workers compensation and how does it work?

Insurance that covers employees if they get injured or sick because of their job.

Employers pay for this insurance regardless of fault.

Only covers Work-Related Injuries and In the Course of Employment.

What is OSHA?

Government agency that set safety rules to prevent injuries and illnesses on the job. Penalties paid if not followed.

(Occupational Safety and Health Administration)

What are the requirements of the Affordable Care Act?

Employer- provided health insurance to employers with 50 or more employees. Incentives for smaller businesses. (Obamacare)

What is the FLSA?

Sets rules for minimum wage ($7.25) and overtime pay. Certain employees who are usually higher paid are exempt from the FLSA. (Fair Labor Standards Act)

What are the primary Environmental Laws we discussed in class and what do they say?

Clean Air Act - Control air pollution by setting primary and secondary standards for air quality.

Clean Water Act - Protect all of the waters in our nation. Prevents dumping unless you have permit.

Resource and Recovery Act - Helps manage hazardous waste