Agency Law o Agency legal consensual relationship that exists when one party the agent acts on behalf of another party the principal Types of Principals o Termination of agency Disclosed agent reveals to a third party that he she is working for a principal Undisclosed agent who does not reveal to a third party that he she is working for a principal o Principal believes the agent is working on their own behalf rather than their principal s Partially disclosed third party knows the agent is representing a principal but does not know the identity of the principal Fiduciary relationship all agency relationships are fiduciary meaning it is one of trust and confidence Ex attorney client doctor patient Imputed knowledge rule fundamental tenet of agency law that notice of the agent is notice to the principal even if the principal does not receive the information from the agent Lapse of time if agency agreement does not provide for a specific time authority for an agent terminates after a reasonable period Purpose achieved Occurrence of specific event termination upon accomplished purpose or upon the happening of a certain event Mutual agreement mutual agreement by both parties can terminate agency relationship Termination by one party unilateral termination is possible but consequences may result through a breach of contract or wrongful termination Termination by death or insanity automatically and immediately terminates agency relationship Impossibility agency terminates upon loss or destruction of the subject matter or when a change in the law makes it impossible for duties to be carried out Changed circumstances if a substantial change in circumstance occurs the agent should reasonably infer that the principal would not want the agency to continue the authority to act is terminated Ex principal authorizes sale of land at 200 000 oil is discovered greatly increasing value agency should not sell at 200 000 Bankruptcy formal bankruptcy procedure terminates agency relationship Insolvency does not necessarily terminate agency relationship War when a principal s and agency s countries are at war the agency is terminated Employment Law o Respondeat superior rule employer is liable to third persons for the torts committed by employee within the scope of their employment and in prosecution of the employer s business Exceptions Frolics employee pursues personal interests while neglecting employer s business Detours minor deviations from employer s business not an exception to respondeat superior o General rules of tort liability Agents employees and independent contractors are personally responsible for their own torts Employer is liable under respondeat superior for the torts of an employee if the employee is acting within the scope of his her employment Principal proprietor or employer is not liable for the torts of an independent contractor unless the work is inherently dangerous Principal may be liable for negligent hiring if he she negligently selects retains trains supervises or otherwise controls agents o Employment at will doctrine employee can quit at anytime for any reason and the employer can terminate at any time for any reason o Fair Labor Standards Act of 1938 Child labor prohibits child labor under 14 unless in the entertainment industry delivering newspapers working for their parents and working in some agricultural areas Hazardous occupations are expressly forbidden Sets minimum wage Provides that work over 40 hours per week for hourly employees is to be compensated at least at a time and a half Some employees are exempted from overtime requirements Executives professional employees certain sales and o Family and Medical Leave Act of 1993 computer workers Employees that have worked for an employer for 12 months may take up to 12 weeks of unpaid leave for certain reasons Birth of a child adoption foster placement care of child parent or spouse serious health condition Only applies to companies with 50 or more employees o Unemployment Compensation Insurance Eligibility dependent on worker s willingness and ability to work Firing for misconduct or quitting relinquishes unemployment compensation o Consolidated Omnibus Budget Reconciliation Act of 1985 COBRA Employees may continue to receive health insurance under an employer s plan for 18 months after termination If employee is disabled 29 months If worker is fired for gross misconduct they are disqualified o Worker s compensation statutes Allows worker to obtain financial benefits while injured on the job in the scope and course of their employment No fault insurance system therefore cannot sue employer in tort Intentional acts by employer are not covered and can result in a lawsuit Self inflicted injuries are not covered Employees can sue the manufacturer or designer of a product that Does not cover domestic workers agricultural workers and caused the injury temporary workers o Occupational Safety and Health Act of 1970 Established the Occupational Safety and Health Administration OSHA to regulate workplace safety at a federal level Employer has general duty to keep workplace reasonably safe and free from recognized hazards Employers are required to report work related injuries to OSHA Violations of OSHA regulations may result in employer being cited or fined o Conditions of employment and privacy Alcohol drug medical testing Most states allow testing of private employees Public employees are generally not subject to this with the exception of transportation workers Lie detector test Employee Polygraph Protection Act of 1988 prohibits employers from requiring or causing employees or applicants to take lie detector tests Generic testing Generic Information Nondiscrimination Act of 2009 prohibits hiring firing job placement or promotion based on results of a generic test Employer electronic monitoring Employees have not expectation of privacy at work Employers can monitor email usage at work record employee telephone conversation etc Employment Discrimination o Title VII of the Civil Rights Act of 1964 Prohibits employer from discriminating against an applicant for a job or current employee because of membership in a protected class Race color religion national origin and gender are all Applies to employers engaged in interstate commerce with 15 or protected classes more employees Does not apply to independent contractors Procedures File complaint to Equal Employment Opportunity Commission EEOC or appropriate state agency o
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