Exam 4 Business Legal Environment

What powers do administrative agencies have?

They have the power of all 3 branches of government. Power to make, enforce, and interpretant the laws.

What is delegation doctrine and is it constitutional?

Yes, it’s constitutional; it gives Congress the power to make all laws necessary to execute the specified powers.

Who and what has the power over many administrative agencies?

The executive branch has the power to appoint people to agencies and veto the creation of new agencies. The legislature has the power to create agencies, abolish agencies, and defund agencies. Judicial has some review over agency action. They can nullify some of the things they do.

Where do administrative agencies derive their power from?

The constitution through the delegation doctrine.

In a conflict between state or federal agencies, who should prevail and why?

The federal because of the supremacy clause.

What is an administrative hearing?

After settlement negotiations fail, you go before an administrative law judge from the same agency as the prosecutors, but they are independent and unbiased.

How does an administrative ruling become final? Can you appeal, and how?

You can appeal it within the administrative agency all the way up the system (exhaustion doctrine). After this, it becomes final. After appealing to the highest point in the agency, you can appeal to a court, but it is generally more difficult because there is deference given to agency judicial decisions. If the courts rule differently, it’s on the arbitrary and capricious clause.

In what ways does an administrative hearing differ from a trial?

More informal, type of procedure, and hearsay allowed.

What is real property and types of rights does an owner have in it?

It’s land and everything permanently attached to the land. Dirt, crops, trees, and a house. The owner has air space, sub-surface, and surface rights.

Know the different real property ownership interests

Fee simple, Life estate, tenancy in common, joint tenancy, community property estate, leasehold estate,

What is fee simple?

A type of real property ownership interest. it is the greatest number of rights, privileges, and power you can have if you own the property. It’s owned with no restrictions and it’s infinite in nature.

What is life estate?

A type of real property ownership interest. it is conveyance of property for their life. Can’t damage or waste it. You can take loans out, but it can’t go past the date you die.

What is concurrent ownership?

It’s 2 types of real property ownership interest. Tenancy in common - You own the property with another person, and when one of the owners dies, their part of the property goes to their heirs.

Joint tenancy - You own the property with another person, but if one of the owners dies, their property ownership goes to the other owner.

What is a community property estate?

This is a type of real property ownership interest. Applicable in Alaska, Arizona, California, Idaho, Texas, and New Mexico. It’s where any property you obtained while married is considered community property. Therefore, it’ll be split up upon divorce.

What is a leasehold estate?

These are different types of real property ownership interests.

Fixed term or tenancy

periodic tenancy - pay month per month

tenancy at will - no notice required

What are easements?

This is a non-possessory interest in property. The right is a person to make limited use of another person’s property without taking anything from the property. Such as a driveway over someone’s property to get to yours. An easement for profit appurtenant is two pieces of property that touch. Easements in gross are two pieces of property that don’t touch. Usually in the deed.

What are profits?

This is a non-possessory interest in property. The right to go onto someone’s land and take part of the land or take some product off the land. Such as selling your mineral rights. You make a profit.

What are licenses?

This is a non-possessory interest in property. A revocable right of a person to come onto another persons land. Such as a football ticket.

In what ways can real property be transferred?

Deed, contract, inheritance, adverse possession.

How to give property by deed?

deed must have the names of the grantor and grantee, words with the intent to convey property, and a legally sufficient description of the property ( like block 5, street 3) must have the signature of the grantor and be delivered to the person buying the land.

How to give property by contract?

the sell is written in the contract

How to get property by adverse possession?

If you stay on the land from 3-30 years uninterrupted, without the landowner’s consent, you can get the land for free. Possession must be actual and exclusive, open and visible to others, the possession must be continuous and peaceable, and hostile and adverse.

What’s the process for selling a piece of real property?

Sign an earnest money contract with a relator, then get the land and house inspected with a survey, then go to a title company or bank and do a real estate closing.

What happens at a real estate closing?

Sign over the deed from seller to buyer. The bank or title company then puts the money in an escrow account. Money and title changes hands.

What is the government’s right to eminent domain?

The government’s right to take private land for public use.

What is a restrictive covenant?

A private restriction on the use of land. Run’s with the land. Can be any restriction except race.

Know the significance of and differences between a sub-lease and an assignment.

Sub-lease - Someone who is transferring all or part of a lease to someone else.

Assignment - Transferring the entire lease property to another person, the person will now take over what you owe. If they don’t pay you’re on the hook.

What is the implied warranty of habitability?

Must be fit for human habitation even if its not in writing.

What is the covenant of quiet enjoyment?

Means neither the landlord has superior entitlement to your use of the property. as long as you’re under a lease they can’t disturb your use and enjoyment of the property.

What are the rights and duties of a renter?

1. The landlord must give you possession

2. Use and maintenance as long as it’s legal

3. Rent withholding

What are the rights and duties of a landlord?

1. Rent has to be paid, or you can be evicted

2. Duty to mitigate their damages.

How can a landlord-tenant relationship be created and terminated?

Created by a lease contract, terminated by term's end, the renter purchases property, abandonment, and eviction.

What is an eviction, and how can it occur?

When someone doesn’t abide by the lease and the lease is terminated. The biggest reason it occurs is that someone doesn’t pay or the landlord doesn’t abide by the lease.

What is key person life insurance?

A key person in your business or organization. Insuring that if that partner dies the business will be able to run. Can’t do it just for anyone.

What is workers’ compensation insurance and how does it work?

Workers comp covers people that are injured while working on the job or at place of employment. Generally covers medical bills etc. Protects business from lawsuit from employees.

What is the difference between term life insurance and whole/universal life
insurance? Are there any exceptions to payment?

Term life insurance - Most affordable. Where you can buy a certain amount of time insurance. There’s no investment or anything. Only death benefit.

Whole life insurance - More expensive. You put money into the policy and get an accumulated surrender value. You can cancel before the person dies. Also puts money into investments.

Exceptions - Suicide before 2-3 years, military during war, execution, mistate on application.

What is a homeowner’s policy and what does it cover?

Homeowners policy covers their home. Includes property coverage, personal possessions while traveling, fire, wind, vandalism, theft, etc. Also covers liability.

What is malpractice insurance and what does it cover?

For professionals so they are protected against malpractice claims.

What is comprehensive automobile insurance & what does it cover?

Covers anything car related other than a car wreck. Covers theft, damage, fire, etc.

When can insurance be cancelled by the policyholder and by the company?

The insurer can cancel for any reason or at any time. The insurance company must have a good reason to cancel insurance.

How is automobile insurance coverage generally listed on a declaration page? (Ex
– 100/300/50) What does each number mean?

first number is max amount insurance will pay to one person in a wreck. Second number is the max amount insurance will pay for more than one person in a wreck. The third number max amount insurance will pay for property damage.

What is Underinsured Motorist insurance coverage?

Coverage for what the other person can’t pay through their insurance.

What is Personal Injury Protection or Medical Payments (MPC) coverage?

Covers medical bills up to a limited amount of money. Has nothing to do with who’s at fault. Personal injury protection will also cover lost wages.

What does a standard insurance policy consist of?

It’s a contract with a start and end date, an appraisal or arbitration clause, and sometimes an anti-lapse clause. The insurance company drafts that policy. Any ambiguity is interpreted against the insurance company.

What are the requirements for a valid will?

1. Testamentary capacity and intent

   1. Must be 18

   2. Sound mind

2. Writing

   1. Generally must be in writing (handwritten is a holographic will)

   2. Not in writing is a deathbed will

3. Signature

   1. The personHow can a will be revoked? making the will must put their signature

4. Must have witnesses

   1. Must have 2-3 disinterested witnesses

5. Must be published

   1. Must make an oral declaration

How can a will be revoked?

1. Revocation by physical act

   1. Destroying it

2. Subsequent writing (a codicil)

   1. Basically an amendment to a will

3. By operation of law

What is a codicil to a will?

An amendment to the will.

What is purpose of admitting a will into probate?

1. To determine the validity of the will.

2. To carry out the administration of the state

What happens if a person dies intestate or without a will?

The state determines where your property goes. Generally gives property to surviving spouse and children.

Know the differences between a living trust, testamentary trust, charitable trust,
and spendthrift trust?

• Living trust

  • Trust created during the lifetime of the grantor. Revokable or irrevokable.

• Testamentary trust

  • Trust created in a will and comes into existence in a will.

• Charitable trust

  • To benefit a segment of the public or the public in general.

• Spendthrift trust

  • Trust that gives a little bit of money at a time, when certain conditions are met.

Know the main duties and obligations of a trustee?

Trustee manages the money. Have to do what the trust requires. They are required to invest conservatively.

Know the difference between a durable power of attorney, a health-care power of
attorney, and a living will

• Durable power of attorney

  • Covers future disability. Authorizes someone to act on the other’s behalf when someone gets incapacitated.

• Health-care power of authority

  • Designates someone to choose what healthcare someone will get in case they become incapacitated.

• Living will

  • A directive to allow a person to choose what medical treatment will happen to you in the event you are incapacitated.