business law exam 4

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Last updated 3:30 PM on 4/5/26
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42 Terms

1
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agency relationship

When a person or company agrees to act for another (often in an employment relationship)

agent

  • acts on behalf of a principle (employee)

principle

  • grants power to the agent (employer)

an agent binds the principle if acting within authority!

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an agency relationshipo is created by

agreement, like power of attorney

ratification

  • you do something for someone else without total power but the principle says its ok

estoppel

  • reasonable reliance

law

3
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authority types

actual authority

  • specifically granted by the principle

apparent authority

  • third party reasonably believes authority exists

4
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duties in agency

principle duties

  • cooperate, compensate, reimburse, indemnify (if the agent gets sued the principle defends + pays anything they would owe)

agent’s duties

  • loyalty, obedience/performance, reasonable care, account (assessment of what you have done), inform, fiduciary duty (acting for the best of the principle)

5
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employee vs independent contractor

control (hours, meetings, schedule)

supervision (bosses)

tools (office, resources)

payment structure (do you. get paid directly by people or weekly)

6
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benefits of independent contractors

employer does not pay:

  • social security, workers’ compensation, unemployment benefits, other benefits

7
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employment at will:

can be terminated anytime unless contract/law restricts

most people are employement at will

cannot be terminated for:

  • basis is that employee refusted to commit illegal act

  • employee performed a public duty like service or jury duty

  • employee acted within legal rights, like filing a WC claim

  • illegal discrimination

8
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employer liability

vicarious liability

  • employers liable for employee’s actions within scope

negligent hiring

  • liability for hiring unfit employees

indemnification

  • the principle paying for, or to insuring againts, damages or losses the agent suffered while undertaking duties for the principle

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employee rights & protections

wrongful termination

  • broad - violates federal, state, and contractual laws

retalitaory discharge

  • Specific type - employer fires an employee for engaging in protected activity (medical, complaint, whistleblowing)

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non-compete agreements

must have reasonable duration and geographic limits

  • smaller geography the better chance you get it enforced

  • same with shorter duration

becoming harder to enforce

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can employees enforce drug-free workplace

yes

12
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OSHA

occupational safety and health administration

  • requires safe workplace

  • gov can inspect even without a warrant

13
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workers compensation

compensates employees for workplace injuries

  • medical bills + wages (2/3)

  • NO pain and suffering compensation tho

  • you don’t have to prove duty, breach of duty, causation, or negligence

designed to quickly provide wages + medical care

does NOT depend on negligence of employer

is required for employers

no right to sue (if someone beside employer is negligent you can sue them)

14
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workers compensation requirements

an injury occurred

injury was the result of an accident of occupational disease

injury arose out of, or in the course of, employment

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family & medical leave act

allows employees to take up to 12 weeks of upaid leave

can be used for:

  • serious illness or disability

  • serious illness or disability of spouse, child, or parent

  • childbirth or adoption

doesn’t have to be continuous

16
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union rights & collective bargaining

NLRA (national labor relations act)

employees have a right to self organize into a union

collective bargaining

  • employers and unions negotiate employment terms

right-to-work laws

  • prohibit mandatory union duties

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unfair labor practices

  • threats like to fire employees or loss of benefits

  • threats like a plant will close

  • question employees about union activites

  • retaliation

  • promise benefits if there is no union

18
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strike vs. lockout

a work stoppage used by employees

used to pressure employers to accept certain terms

employee’s counterpart to a lockout

  • Lockout:

    • Employer prevents employees from working due to a dispute

    • Used to pressure employees to accept certain terms

    • Employer’s counterpart to a strike

19
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public duty doctrine is ____

NARROW

jury duty + armed forces = required

reporting sex offender is not required

20
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An employer can discharge an employee at any time for any reason except…

contract

discrimination

21
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equal pay act - equivalent jobs

men and woman must recieve equal pay when job is equivelent in

  • skill

  • effort

  • responsiblity

  • working conditions

permitted reasons for different pay

  • seniority system

  • merit

  • productivity-based

  • any factor other than sex

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whats the most important anti-discrimination law

Title VII of the Civil Rights Act

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employer coverage

federal anti-discrimination laws apply to employers with 15 + employees

BUT state laws apply to nearly every business

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discrimination is prohibited based on

race

color

religion

sex

national origin

25
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employers cannot

fail to hire

refuse to hire

discharge

offer different compensation

offer different terms / conditions

offer different privileges of employment

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religious exemption

  • “This subchapter shall not apply to any employer with respect to… a religious corporation association, educational institution, or society with respect to the employment of individuals of a particular religion to perform work connected with the carrying on by such corporation, association, educational institution, or society of its activities”

27
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who has the burden of proof in discrimination cases?

the plaintiff typically

  • but in discrimination the plaintiff just has to show it looks like discrimination

  • its hard

  • the worker has to give some evidence of discrimination such as they hired a man after firing woman

  • then the burden shifts to the employer to convince the jury they had non-discriminatory reasons

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religious accommodations

emplooyers must make reasonable accommodations unless it causes an undue burden

29
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sexual harassment

  • Includes

    • Unwelcome sexual advances

    • Requests for sexual favors

    • Conduct creating a hostile work environment 

      • Prohibited as sex discrimination

      • Examples include:

        • Discussing sexual activities

        • Commentating on physical attributes

        • Unnecessary touching

        • Offensive language

        • Displaying suggestive images

30
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age discrimination

prohibited for workers 40+ but permitted for younger workers

31
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military and genetic discrimination

not permittedfi

32
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filing a discrimination charge

victims file a charge with the EEOC within 180 days

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EEOC actions

equal employment opportunity commission

  • If no agreement is reached:

    • If EEOC believes discrimination occurred, then EEOC issues a ‘Right to Sue’ letter

    • If EEOC does NOT believe discrimination occurred, then it dismisses complaint

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discrimination lawsuits

normall the EEOC and federal gov are NOT involved in this civil litigation

35
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constructive discharge

occurs when an employee quits due to an illegal hostile work environment (essentially, they forced them to quit)

36
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pretext in discrimination cases

when an employer gives a false nondiscriinatory reason for discrimination

37
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damages in discrimination cases

  • Courts can order:

    • Back pay

    • Future pay

    • Compensatory damages

    • Punitive damages

    • Attorney fees

38
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affirmative action

  • Programs designed to remedy discrimination in hiring, training, and promotions

  • For 50 years, have been legal, but now many, if not all, are considered illegall

39
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disability discrimination

  • The Rehabilitation Act of 1972 AND Americans With Disability Act prohibits discrimination based on disability

  • Reasonable accommodations

    • Make facilities accessible

    • Restructure jobs

    • Modify schedules

    • Acquire or modify equipment

    • Modify tests, training materials, or policies

    • Provide readers for interpreters

    • Reassign to vacant positions

40
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undue hardships

employers do not have to accommodate if it causes undue hardship

  • if they have millions of dollars its hard to prove as hardship

with a reasonable accommodation, the person must be able to perform the essential functions of the job

41
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job interviews with disabilities

Employers cannot ask candidates about disabilities during interviews

42
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The employer must provide reasonable accommodations so the employee can perform the essential functions 

interavtive process -coming up with solution

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