Bus 3350 1st Edition Exam 3 Study Guide Lectures 10 12 April 6 What is an agency How are agencies formed What are the duties and rights of agencies and principals How is an agency terminated Agency Dealing with relationships with a principal and an agent ex real estate agent o buyer or seller is principal o someone who represents the principal to the world o acts on principal s behalf o bc more knowledgeable and have expertise ex attorney someone who interacts with third parties o ex employee who buys ingredients for a restaurant difference between employee and independent contractor o independent contractor someone who is separate from a business that is hired to do a specific task o distinct from what the business does o liability who is responsible ex plumber factors a court will look at to determine whether someone is an employee or an independent contractor 1 who exercises control over the work who determines how something gets done 2 workers business distinct from employers business 3 the extent of the employers supervision over the work 4 who supplies the tools whoever supplies the tools is the contractor 5 the length of employment 6 how they get paid method and means of payment contractors gets one lump sum for the task employee gets paid on a regular basis and taxes are taken out 7 degree of skill required Formation of agency relationship legal contractual relationship principal agent relationship is based on contracts can be in writing or implied conduct best way principle has contractual capacity capable of knowing relationship agency by ratification o when you ratify it implies that it has already been done agency by estoppel o third party believes that someone is the agent implied based on behavior however there is really no agency or relationship o courts will stop or prevent from denying relationship you made your bed now lie in it Duties and rights of agencies and principals Duty of agent is the right of the principal 1 Agents has duty to perform Relying on agent to exercise duty with diligence If they fail it could be a contractual breach 2 Agents has duty to notify principal of what they are doing and give advice 3 Agent has to be loyal to the principal 4 Agent must have obedience to lawful instructions 5 Agent has to give an accounting Informs principal where all their stuff has gone to Principal s duty primary duty compensation 1 Compensation pay 2 Reimbursement and indemnification Reimbursement Agent gets paid for mileage papers etc Indemnification cover liabilities for agent 3 Cooperation 4 Provide safe working environment for agent Scope of an agent s authority What can an agent do Expressed authority what is clearly given Clear and ambiguous Implied authority what power the agent has to implement the direct authority o Ex principal wants to sell car Agent communicates and negotiates to complete mission implied authority Apparent authority the perspective what a third party believes that the agent has what does the third party think o If third party has valid reason to believe the agent is actually the agent principal can be estopped from denying responsibilities Termination of agency Completion of contract when something is finished Can be done by a lapse of time If purpose is achieved If there is a specific occurrence of an event o I want you to represent me until I get out of a coma Natural terminations of the law o Ex death of one of the parties o Impossibilities agents do something no longer possible April 13 What is employment law What is an at will doctrine What are the discriminatory practices Employment law How do employment relationships begin o Contractual basis In state of TN at will doctrine is where an employee can leave at any time without 2 week notice and employer can fire you for any reason Some states have contractual obligations and legal requirements where one must get 2 week notice Certain exceptions to at will doctrine o Contract can stipulate requirements o 2 week notice o court induced reasons o whistle blower exception someone who notifies the government about the employee s bad behavior Violating rule of regulation that they can be in trouble for Family medical leave act FMLA o Covers employers or businesses that have 50 or more employees o Does not cover new hires part time employees or key employees o Must be there at least a year o To protect employees from being fired because they re handling family emergencies o Downside employees not paid o Downside for business have to hire someone to do their job or other employees have to pick up your work o How system works 12 month cycle 12 weeks in a 12 month cycle Ex take 2 weeks off in April cycle starts again in April o Violation can lead to termination Occupation safety and health administration o OSHA o Regulates whether something is safe or not in a workplace o Power to investigate what s going on o Research health and safety problems o State workers compensation Comprise between employees and employers Makes it easier for an employee to prove the need for compensation All you have to prove is that you were working and they got injured on the job The employer through workers comp insurance pays out medical bill and certain percentage for lost work Good thing for employers pre set don t have to worry about large lawsuits Lowers the level of proof that an employee has to show that they need to get some money back for being injured on the job The employer doesn t risk as much for the loss Discrimination o Civil rights act of 1964 title 7 o Purpose protect employees from discrimination 1 Color 2 Race 3 Gender 4 Religion 5 national origin o Covers hiring promoting and firing including everything in between o Prevents an employer from discrimination Two types of discriminatory practices o Intentional and unintentional o Intentional desperate treatment plaintiff must prove that one 2 ways to prove of the facts played a part Isolated incident No one has even been hired for the position o Unintentional desperate impact motivating factor doesn t matter Plaintiff does not have to prove that they were intending to discriminate Must prove that they did discriminate anyways Results were discriminatory Bona fide occupational qualifications Bfoq defense o Employer is giving legitimate reason to discriminate o Ex women jail workers need women workers April 20 Who handles situations of discrimination What is sexual harassment What are torts EOC equal employment opportunity commission 3 rd party