Business Law FINAL Part 3

Undisclosed principal

A principal whose identity is unknown to the third party at the time of the agent's transaction.

Disclosed principal

A principal whose identity is known to the third party.

Partially disclosed principal

A principal whose existence is known but whose identity is not revealed to the third party.

Ratification

Acceptance of responsibility for an agent's unauthorized act.

Wrongful discharge

Firing an employee in violation of a contract or the law.

Employment at will

Employment that can be terminated by either party at any time for any legal reason.

Minimum wage

The lowest wage permitted by law or by a special agreement.

Whistleblowing

Reporting illegal or unethical behavior within an organization.

Principal's knowledge of agent's information

The law assumes the principal knows information the agent learns in the scope of employment.

Effect of state minimum wage higher than federal

Employers must pay the higher state minimum wage.

Common law exceptions to employment at will

Include public policy, implied contract, and covenant of good faith exceptions.

Tax contributions by employees and employers

Both are required to contribute to Social Security and Medicare.

Principal's duties to agent

Compensation, reimbursement, indemnification, and cooperation.

Employee vs. independent contractor

Depends on degree of control, method of payment, and other factors.

Principal vs. agent

The principal gives authority; the agent acts on behalf of the principal.

Agent's duties to principal

Loyalty, obedience, performance, accounting, and notification.

Copyright ownership of work by employees vs. contractors

Employers own work created by employees; independent contractors usually retain rights unless otherwise agreed.