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Unformatted text preview: Becker Auditing – 2009 Edition Chapters 5 – 7 Page 1 of 7 Chapter 5 Employer-Employee Law The Fair Labor Standards Act = wages and hours. The National Labor Relations Act = collective bargaining (i.e., unions) activities. The Taft-Hartley Act = labor relations. The ADA prohibits discrimination; it does not govern wages and hours. Subrogation is the right a surety has by which he succeeds to the creditor's rights against the principal when the surety pays the principal's obligations. Exoneration is the right a surety has against the debtor to force the solvent debtor to pay a debt when the debtor refuses to do so. Contribution is a right one surety has against his co-sureties to force them to pay their share of the debt. Attachment is not a right of suretyship, but rather is a remedy imposed against property of someone who owes a creditor money. Some contracts have to be in writing because they can easily be denied by the other party in contempt of the contract. An example is the "Promises to pay debts barred by Statute of Limitations", which states that "a promise to pay a debt barred by the statute of limitation is enforceable if it is in writing, but to the extent of the writing". There are six contracts that require some type of writing to be enforceable. Both parties on these contracts need not sign the writing, but only the party to be charged (i.e. party trying to avoid the contract) must sign. The six contracts are: “MYLEGS” 1) Contracts where the consideration is marriage 2) Contracts which by their terms cannot be performed within one year 3) Contracts involving interest in land 4) Contracts by executors or similar representatives to pay estate debts out of personal funds. 5) Contracts for sale of goods for $500 or more, AND 6) Contracts to act as surety (i.e. to pay the debts of another) When the statute of frauds is involved, contract law requires that the contract be in writing. The six major contracts that must be in writing are marriage, contracts that will take more than one year to complete, anything involving interests in land, contracts by executors, sales of goods for $500 or more, and to act as a surety. Some contracts have to be in writing as an act of law. Many contracts that are only oral should be put in writing so that all parties are protected and all parties are completely clear on the terms. Becker Auditing – 2009 Edition Chapters 5 – 7 Page 2 of 7 Chapter 6 Subrogation is the right a surety has by which he succeeds to the creditor's rights against the principal when the surety pays the principal's obligations. Exoneration is the right a surety has against the debtor to force the solvent debtor to pay a debt when the debtor refuses to do so....
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This note was uploaded on 05/11/2010 for the course CPA 2010 taught by Professor ?? during the Spring '10 term at Becker College.
- Spring '10