BLA Unit 3

Question 1

agent vs principal

Question 2

fiduciary relationship

Answer 2

agent puts principal interests first

Question 3

agency by ratification

Question 4

agency of estoppel

Question 5

agency by operation of law

Question 6

agent duties

Answer 6

1. performance
2. notification
3. loyalty
4. obedience
5. accepting

Question 7

principal dities

Answer 7

1. compensation
2. reimbursement
3. cooperation
4. safe working conditions

Question 8

notice to agent=

Answer 8

notice to the principal

Question 9

indemnification

Answer 9

ex: you get in wreck while running errand for boss, they are responsible

Question 10

types of agents

Answer 10

employee, IC, professional/ fiduciary, business owner

Question 11

agent authority (express vs apparent)

Answer 11

express: (equal dignity rule) agent authority in writing, contract
apparent: apparent not real, principal makes 3rd party falsely believe agent has authority

Question 12

Who is liable?
unauthorized acts

Answer 12

disclosed p: agent
undisclosed p: agent
partially disclosed p: agent

Question 13

Who is liable?
authorized acts

Answer 13

disclosed p: principal
undisclosed p: both
partially disclosed p: both

Question 14

Who is liable?
torts/ crimes

Question 15

vicarious liability

Answer 15

applies to negligence, principal liable bc agent does not have means to compensate for damages

Question 16

doctrine of respondent superior

Answer 16

let the master answer

Question 17

negligent agent, in scope or not

Answer 17

detour: yes, in scope, principal liable
frolic: no, not in scope, agent liable

Question 18

business ethics

Question 19

moral minimum

Answer 19

bare minimum to comply with law and satisfy society

Question 20

trolley problem

Answer 20

train on course to kill 3 people or you could switch it to path killing one

Question 21

German hijak case

Question 22

ford pinto case

Question 23

corporate social responsibility

Answer 23

management of corporations are liable to society for their actions

Question 24

LLC benefits

Answer 24

flexibility, less risky, owners individually taxed, can’t lose anything more than what you put into company

Question 25

how are LLC taxed

Answer 25

different tax structure to chose from, taxed like partnerships if there is multiple owners

Question 26

s corp taxation for LLC

Answer 26

allows them to pay taxes like corporation

Question 27

how do they save on payroll taxes

Answer 27

by paying themselves through payroll , then they can claim less income

Question 28

LLC operating agreement

Answer 28

all LLC should have unless they are single owned

Question 29

NC guiding principal

Question 30

components of LLC agreement

Answer 30

who has authority, who can sign for certain things, next steps after a death or removal of member, who handles money, method to buy each other out

Question 31

deadlock in LLC

Answer 31

50/50 vote and there is nothing you can do, always include a way to break ties

Question 32

sole proprietors

Question 33

partnerships

Question 34

Franchises