Chapter 1

Question 1

Agent / Principal

Answer 1

The actor Is called the agent and the party from for whom agent acts and from whom that agent derives authority to is called the principal

Question 2

Independent Contractor

Answer 2

Generally, a person who contracts with the principal to perform a task cording to her or his own methods, and who is not under the principles control regarding the physical details of the work

Question 3

Vicarious liability

Answer 3

Employer is held liable for the actions of its employee. The imposition of liability on one party or the wrongs of another. Liability may extend from an employee to the employer on this basis if the employee is acting within the scope of her or his employment at the time the liability arose

Question 4

Common Law agency Test

Answer 4

A test used to determine employee status; though it considers several factors, the most critical is whether the employer has the right or ability to control the work

Question 5

IRS 20 factor analysis

Answer 5

A list of 20 factors to which the IRS looks to determine whether someone is an employee or an independent contractor. The IRS compiled this list from the results of judgments of the courts relating to this issue

1. Instructions
2. Training
3. Integration
4. Personal Rendering of Services
5. Hiring
6. Continuing relationships
7. Set hours of week
8. Full-time requirement
9. Work performed on the employer’s premises
10. Order of sequence set
11. Oral or written reports
12. Furnishing of tools and materials
13. Payment by hour, week or month
14. Payment of business or traveling expenses
15. Significant investment
16. Realization of profit or loss
17. Worked performed for than one firm at a time
18. Service made available to the general public
19. Right to discharge
20. Right to terminate

Question 6

Economic realities test

Answer 6

A test to determine whether a worker qualifies as an employee. Courts use this test to determine whether a worker is economically dependent on the business or is in business for himself or herself. To apply for Test, courts look to the degree of control exerted by the alleged employer over The workers opportunity for profit or loss, the workers investment in the business, the permanence of the working relationship, the degree of skill required by the worker, and the extent of the work is an integral part of the alleged employers business

Question 7

Contingent worker

Answer 7

One whose job with an employer is temporary, is sporadic, or difference in anyway from the norm for full-time employment

Question 8

Joint and several liability

Answer 8

Both the staffing firm and the client may share liability as employers of the worker

Question 9

Applicant

Answer 9

Individuals who indicated an interest in being considered for hiring promotion or other employment opportunities

Question 10

Employer

Answer 10

One who employs or users augurs to do his or her work or to work on his or her behalf

Question 11

Non compete agreement ( or covenant not to compete )

Answer 11

An agreement by the employee not to disclose that employers confidential information or enter into competition with the employer for a specified period of time and are within a specified region

Question 12

Forum selection cause

Answer 12

A clause in a contract that identifies the state law that will apply to any disputes that arise under the contract

Question 13

Inevitable disclosure

Answer 13

The theory Under which a court may prohibit a former employee from working for an employers competitor if the employer can show that it is in evitable that the former employee will disclose a trade secret by virtue of his or her position