25 - 28 Agency & Employment

Question 1

• a party who appoints a second party to serve as an agent
• a person who appoints another to contract with third parties, who is primarily liable to the third party or creditor

Answer 1

Principal

Question 2

• the person appointed to contract on behalf of another
• the party appointed by the principal to enter into a contract with a third party on behalf of the principal

Answer 2

Agent

Question 3

Agent authorized by the principal to executable / transact specific act(s)

Answer 3

Special agent

Question 4

Contract under which one party is authorized to contract for another

Answer 4

Agency

Question 5

Agency arising when person leads another to believe third party is the first person’s agent

Answer 5

Agency by estoppel

Question 6

A language of business employed to communicate financial information based upon analyzing, recording, classification, summarization, reporting, and interpretation of financial data

Answer 6

Accounting

Question 7

The omission, annulment, or cancellation of an instrument, act, license, or promise by one doing or making the offer

Answer 7

Revocation

Question 8

One who contract to perform jobs / certain tasks for a set fee, who is independent of the control of the contracting party as to a means by which the contract is executed, but is controlled only by the specifications established in the contract

Answer 8

Independent contractor

Question 9

The authority an agent is believed by third parties to have because of the BEHAVIOR of the principal

Answer 9

Apparent authority

Question 10

Agent who is authorized to execute the principal’s business of a particular kind, or all the principal’s business at a particular place, if not all of one kind

Answer 10

General agent

Question 11

Bailee seeking to sell property on commission

Answer 11

Factor (commission merchant)

Question 12

Factor who sells on credit and guarantees price will be paid

Answer 12

Factor del credere

Question 13

Agent with job of bringing two contracting parties together

Answer 13

Broker

Question 14

General agent appointed by a written authorization

Answer 14

Attorney in fact

Question 15

The power to act for someone else

Answer 15

Authority

Question 16

The authority of an agent, STATED in the document or agreement creating the agency

Answer 16

Express authority

Question 17

An agent’s authority to do things not specifically authorized in order to carry out express authority

Answer 17

Implied authority

Question 18

Authority an agent possesses by custom

Answer 18

Customary authority

Question 19

• a principal’s instrument in WRITING APPOINTING / authorizing one person to act as agent for the principal
• revoked on death of principal by operation of law
• can be general (full) or special (limited)

Answer 19

Power of attorney

Question 20

• exists when a person executes a POA which will become or remain effective in the event he or she later become disabled
• written appointment of agency that survives incapacity of principal

Answer 20

Durable power of attorney

Question 21

Agency in which agent has FINANCIAL STAKE in performance of agency because of having given consideration to principal

Answer 21

Agency coupled with an interest

Question 22

Unilateral act of holder giving up rights in the instrument or against a party to it

Answer 22

Renunciation

Question 23

The party who employs employees to do certain work

Answer 23

Employer

Question 24

A federal act which requires most employers and employees to pay taxes to support the federal social security program

Answer 24

Federal Insurance Contributions Act
FICA

Question 25

Federal legislation requiring employers to check job applicants’ papers to be sure they are either US citizens or aliens authorized to work in the US

Answer 25

Immigrant Reform Act

Question 26

A governmental agency with the responsibility for regulatory and enforcement of safety and health matters for most US employees; an individual state OSHA agency may supersede the US Department of Labor OSHA regulations

Answer 26

Occupational Safety and Health Act OSHA

Question 27

The amount that an employer must withhold from an employee’s pay for income tax purposes

Answer 27

Federal income tax withholding

Question 28

Wage and Tax Statement; a report furnished by the employer for each employee indicating gross earnings and deductions for income and FICA taxes

Answer 28

W-2 Form

Question 29

Employees’ Withholding Allowance Certificate

Answer 29

W-4 Form

Question 30

- Person hired to perform work and who is obligated both as to the work to be done and as to the manner in which it is to be performed - one who is under the control and direction of an employer with regard to the performance of employment

Answer 30

Employee

Question 31

Employment terminable by employer or employee for any reason

Answer 31

Employment at will

Question 32

Employee with the same status and working with another worker

Answer 32

Fellow servant

Question 33

Theory imposing liability on employers for torts of employees

Answer 33

Respondeat superior

Question 34

Employer’s right to use employee’s invention without payment of royalty

Answer 34

Shop right

Question 35

Lie detector

Answer 35

Polygraph

Question 36

Legislation that guarantees disable people equal access to employment, as well as access to public places

Answer 36

Americans with Disabilities Act ADA

Question 37

Federal legislation that requires employers to treat applicants and employees equally regardless of age

Answer 37

Age Discrimination in Employment Act

Question 38

The absence of employment discrimination based on race, color, religion, sex, or national origin

Answer 38

Equal Employment Opportunity Act

Question 39

Outlaws discrimination in pay based on the sex of the worker

Answer 39

Equal Pay Act

Question 40

Alteration of terms or conditions of employment by harassment and abuse based on employee’s membership in a protected class

Answer 40

Hostile work environment

Question 41

FAIR POLICY disproportionately affecting a protected class of persons

Answer 41

Disparate impact

Question 42

Group protected by anti-discrimination laws

Answer 42

Protected class

Question 43

INTENTIONAL DISCRIMINATION against a particular individual because of membership in a protected class

Answer 43

Disparate treatment

Question 44

Federal legislation that prohibits discrimination on the basis of race, color, religion, sex, or national origin

Answer 44

Civil Rights Act of 1964

Question 45

Temporary, concerted action of workers to withhold their services from an employer

Answer 45

Strike

Question 46

Outlaws discriminatory practices in pay ; requires employers to pay a minimum wage to employees and to pay a minimum of one and one0half of the regular wage rate for any hours beyond forty worked in a week

Answer 46

Fair Labor Standards Act

Question 47

Attempt by employees to stop third party from dealing with employer

Answer 47

Secondary boycott

Question 48

Agreement between an union and an employer that the employer will not use nonunion materials

Answer 48

Hot cargo agreement

Question 49

Process by which employer and union negotiate and agree on terms of employment

Answer 49

Collective bargaining

Question 50

Work setting in which all employees must be union members

Answer 50

Union shop