Busines Law Final review

Busines Law Final review - Chapter 24 PRINCIPLE...

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Chapter 24 PRINCIPLE ORGANIZATION FOCUS! Agency Relationships: agent agrees to represent/act for principle agency: relationship between 2 parties in which one party agrees to represent or act for the other fiduciary: person having a duty created by his undertaking to act primarily for another’s benefit in matters connected to the undertaking; fiduciary relationship: involves trust and confidence Employer-Employee relationships: Employment laws only apply to this relationship Ex. Sales clerk is agent for dept. store owner and sells goods that are binding on principle Employer-Independent contract relationship Independent contractor: works for and receives payment from an employer, but whose working conditions and methods are not controlled by employer. Not an employee, but may be an agent. Ex. Truck drivers who own equipment and hire themselves on per job basis Determining Employee Status: 1. Amount of control over details of work? 2. Is worker engaged in occupation distinct from that of employer? 3. Work done under employer direction or specialist without supervision? 4. Does employer supply tools at place of work? (yes = employee) 5. Time period person employed? (long time = employee) 6. How paid? By time period or at end of job? (time per = employee) 7. Degree of skill required by worker? (little skill=employee) IRS has its own criteria to determine if employee vs. independent contractor Ex. Microsoft employees sue because they want to be classified as employees for stock options. Passed because had significant control over work performance Classification as employee good because tax benefits and protected by employment laws Copyright Act: copy written work by employee within scope of employment is “work for hire” and employer owns copyright Independent contractors own their own copyright o Ex. You ask me to make computer program so I do and add copyright to it, but it gets removed. I sell to publisher and sue claiming you have copyright rights. Wrong because I control my work. How Agency Relationships Formed - Agency by Agreement o Express or implied o Ex. Borris parks cars but has no contract – agent employee - Agency by Ratification
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o Ratification: accepting and giving legal force to an obligation that previously was not enforceable/. - Agency by Estoppel o Convince someone that an individual is your agent but really not. If deal struck w. person faking identity, then it doesn’t count. - Agency by Operations of Law Occurs in family relationships or emergencies (can’t contact principle) Ex. Charge something on spouse credit card, spouse liable Ex. RR engineer contract on behalf employer is someone hit by train Duties of Agents and Principles Agent Duties to Principle Performance o Reasonable diligence and skill o Breach of contract if not up to par of normal person performance Notification o Agent tells principle anything concerning agency o Ex. Selling paintings, agent know buyer insolvent, can tell principle not to sell
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Busines Law Final review - Chapter 24 PRINCIPLE...

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