Business Law 19.0

Question 1

most common form of principal and agent

Answer 1

employer and employee

Question 2

chipotle example: does chipotle serve the customers food?

Answer 2

no, chipotle as a business is the principal and to physically serve food, they need employees or agents to do the labor

Question 3

agency

Answer 3

consensual relationship in which one person (the agent) acts on behalf of the principal with the power to affect the legal rights and duties of the principal

Question 4

all companies act through

Answer 4

agents

Question 5

when an agent is acting on behalf of the principal, legally speaking, who is taking the act?

Answer 5

when A acts on behalf of P, it is as if the P is acting for itself

Question 6

2 reasons why we care about employees versus independent contractors

Answer 6

1. for tax reasons
2. “who can sue who” if someone gets injured

Question 7

what does the domino’s driver example resemble / show

Answer 7

that if an employee from dominos hits someone while out on delivery, the victim is probably going to sue dominos or the principal because the principal as an entity has more money and insurance

Question 8

the 9 factors we consider to determine whether or not someone is an employee or an IC

Answer 8

1. the amount of control the P exercises over the A’s work
2. whether the P and A are in different types of business
3. whether the P supervises the A’s work
4. Does the A have a skill that the P doesn’t have
5. Who supplies the tools to do the work
6. the anticipated length of the relationship
7. whether the agent is paid by thee job or the time worked
8. what type of relationship do the parties think they are creating
9. is the P “in business” or not

Question 9

if the P has a lot of control over the A’s work, IC or EE

Answer 9

EE

Question 10

if the P and the A are in different types of business, is the A an IC or an EE

Answer 10

probably an IC

Question 11

if the P supervises the A’s work, is the A an EE or an IC

Answer 11

probably an EE

Question 12

if the A has a skill that the P does not have, is the A an EE or an IC

Answer 12

probably an IC

Question 13

if the P supplies the tools so A can do their job, is the A an EE or an IC

Answer 13

probably and EE

Question 14

if the anticipated relationship length between the A and the P is one or more years, the A is most likely….

Answer 14

an EE with the exception of some things like large construction projects, etc.

Question 15

if A is paid per the job and NOT by the hour, is the A an EE or an IC

Answer 15

an IC

Question 16

is the A an EE or an IC if the P is not in business

Answer 16

if the P is not in business, the A is an IC (lifeguard ie)

Question 17

PoA stands for

Answer 17

power of attorney

Question 18

power of attorney

Answer 18

a legal document which authorizes an agent to act on a principals behalf in a particular situation

Question 19

duties that agents owe to their principals

Answer 19

1. obedience
2. good conduct
3. keep the principal informed, with all of the relevant information
4. account for the principals money or property
5. fiduciary duty owed by agent - agent must act in the P’s best interest at all times
6. avoid conflicts of interest and self dealing
7. agents must avoid competing with their principal
8. avoiding misappropriating P’s money or property
   9.keep principals confidential info confidential

Question 20

duties that principals owe to their agents

Answer 20

1. compensation / payment
2. P must deal with the A fairly and honestly
3. reimbursement
4. indemnification

Question 21

indemnification

Answer 21

if the A gets hurt or suffers a loss or damage of property while working for P, the P must make the A “whole”

Question 22

ways agencies can end

Answer 22

1. principal firing agent
2. quitting
3. operation of law (death, becomes illegal)
4. completion of tasks
5. mutual agreements
6. lapse of time