*Contracts, Benefits, and Practice Management For The Veterinary Profession

Question 1

Are DVMS eligible for overtime per the Fair Labor Standards Act?

Answer 1

only if it’s a condition of their contract

Question 2

What law provides tax relief for people with educational debts?

Answer 2

Tax Relief Act of 1997

Question 3

Define: Lifetime Learning Tax Credit

Answer 3

allows up to $4k in tuition costs to be put against federal taxes owed

Question 4

How many new clients should a practice get per month?

Answer 4

20 new clients per full time DVM

Question 5

How does an employee qualify for FMLA?

Answer 5

employed for 12+ months

employed for 1250+ hours

company has 50+ employees

employee provides at least 30 days written notice

Question 6

Define: Equal Pay Act

Answer 6

requires that men and women receive equal pay and benefits

Question 7

What is needed to receive workman’s compensation during an LOA?

Answer 7

incident report

request from employee

statement from healthcare provided to insurance

Question 8

Who does Professional Liability Insurance cover?

Answer 8

practice owner, employees, volunteers

Question 9

Define: Bailee Supplemental Insurance

Answer 9

for pets who escape, are injured in transit, or attacked by another pet while in vet practice’s care

Question 10

Define: “Elimination Period” in regards to Disability Income

Answer 10

waiting period after injury before benefits begin

Question 11

Define: Automatic Benefits Indexing

Answer 11

increased pay from disability insurance due to inflation

Question 12

In regards to disability insurance, what is the coverage that allows the insured to be reimbursed until income returns to the predetermined amount?

Answer 12

Total Recovery Clause

Question 13

Define: Future Insurance Option

Answer 13

In regards to disability insurance.

allow purchasing of additional insurance as income increases.

Question 14

In regards to disability insurance, what allows increases in monthly benefits to keep pace with cost of living?

Answer 14

Cost of Living Option

Question 15

Define: Overhead Expense Insurance

Answer 15

reimburses business expenses while PO is on disability

Question 16

What insurance is an agreement between co-owners that identifies responsibility when one owner is disabled, dies, or is terminated?

Answer 16

Buy-Sell Insurance

Question 17

What insurance reimburses the practice when a key person becomes disabled?

Answer 17

Key Person Disability Insurance

Question 18

Define: Step Rate Policies

Answer 18

where insurance rate slowly increases as employee gets older

Question 19

Regarding health insurance, define: Fee for Service

Answer 19

allows patient to go to any doctor

high premiums

Question 20

Regarding health insurance, define: HMO

Answer 20

covers preferred providers

specialist can only be seen by referral

Question 21

Regarding health insurance, define: PPO

Answer 21

covers preferred providers

specialist does not require referral

Question 22

Define: Term Life Insurance

Answer 22

provides coverage for a defined period of time

Question 23

Define: Permanent Life Insurance

Answer 23

provides coverage for entire life

typically level premium through entire life

Question 24

In regards to life insurance…

what is the difference between annually renewable, decreasing term, and level term?

Answer 24

annually renewable - premiums increase each year

decreasing term - level premiums, but decreasing coverage

level term - premium stays level for set number of years

Question 25

Regarding life insurance... define: waiver of premium

Answer 25

waives premium payments during disability

Question 26

Regarding life insurance... term for: allows additional increments of insurance to be purchased without medical exams

Answer 26

additional insurance

Question 27

Regarding life insurance... term for: allows advance of benefits when insured has terminal illness

Answer 27

accelerated benefits

Question 28

Regarding life insurance... term for: allows splitting of joint life policy to individual policies

Answer 28

policy split option

Question 29

Regarding life insurance... define: exchange rider

Answer 29

allows transfer of policy to someone else

Question 30

Regarding retirement plans... Define: Traditional profit sharing plan

Answer 30

divide employer's annual contributions equally as uniform % of pay

Question 31

Regarding retirement plans... define: integrated profit sharing plan

Answer 31

allows more of employer's contributions to those whose earnings exceed a minimum amount

Question 32

Regarding retirement plans... Define: age-weighted

Answer 32

allows more contributions to go to older staff

Question 33

Regarding retirement plans... define: new comparability

Answer 33

allows employer to define different groups to allocate contributions accordingly

Question 34

Term for: employer makes non-discrimatory contributions to employee's IRA

Answer 34

simplified employee pension plan

Question 35

Define: Economic Growth and Tax Relief Reconciliation Act of 2001

Answer 35

increased maximum contribution of profit sharing plan from 15% to 25%

Question 36

Define: 401K

Answer 36

allows employee to make salary deferral contributions for retirement, usually with employer match

Question 37

What are the contribution limits for 401Ks?

Answer 37

up to 100% of salary or up to $15K

Question 38

What is the difference between a simple 401k and simple IRA?

Answer 38

401k - limited withdrawal reasons | IRA - with withdraw for any reason

Question 39

Define: Restrictive Covenants

Answer 39

limits the area and time where former employee can work similar job AKA noncompete clause

Question 40

Define: Sherman Antitrust Act

Answer 40

restricts interstate commerce and competition

Question 41

Define: Material Breach

Answer 41

breach in contract

Question 42

Define: Liquidated Damages

Answer 42

amount owed if there is a breach in contract

Question 43

Define: Blue Pencil Doctrine

Answer 43

if courts can deem contract reasonable by omitting the unreasonable parts, they should

Question 44

Define: Savings Clause

Answer 44

verbiage that deems contract valid even if portion is deemed unreasonable

Question 45

Define: English Common Law System

Answer 45

judges have discretion to establish legal precedents based on customs and beliefs of the people

Question 46

Define: Case Law

Answer 46

law derived from judicial decisions and interpretations

Question 47

Term for: decisions made in prior cases are to be followed in current cases in courts of the same jurisdiction

Answer 47

Stare Decisis

Question 48

Term for: ethical constraints formed by principles and ideals developed by group of people to encourage high standards

Answer 48

Code of Ethics

Question 49

What is the Code of Ethics calls for DVMs?

Answer 49

AVMA Principles of Veterinary Medical Ethics

Question 50

What is the difference between official, administrative, and normative veterinary ethics?

Answer 50

- official — ethical standards established by organized vetmed - administrative — ethical standards established by government bodies - normative — ethical standards established by principles of right and wrong

Question 51

Who enforces laws vs ethics?

Answer 51

Laws - government | Ethics - organizations

Question 52

Define: dog and cat lemon laws

Answer 52

can return unhealthy pet to dealer and obtain new pet or refund for vet expenses

Question 53

What is the DVM's moral duties?

Answer 53

- protect animals - apply own standards of right and wrong - educate owners

Question 54

What's the DVM's ethical duties?

Answer 54

- follow AVMA Principles of VetMed Ethics - retain public’s trust - advocate for animals and society’s relationship with them

Question 55

What's the DVM's legal duties?

Answer 55

- follow contracts - enforce state and federal laws - understand laws regarding care of animals - be involved in creation of laws related to profession

Question 56

What term describes utilizing legal consequences with difficult owners to produce results, rather than moral consequences?

Answer 56

Armtwister

Question 57

Define: written law

Answer 57

rules enacted by government and placed in code of laws

Question 58

Define: unwritten law

Answer 58

aka "common law" interpretation by court system of written laws including previous case decisions

Question 59

Define: Substantive law

Answer 59

rights and duties which a person must adhere to in society

Question 60

Define: procedural law

Answer 60

rules and procedures for conducting a lawsuit

Question 61

Define: criminal law

Answer 61

between individual and society

Question 62

Define: civil law

Answer 62

between individuals in society

Question 63

Term for: payment of monetary damaged for injury caused by misconduct

Answer 63

Remedies at Law

Question 64

Term for: payment via action for misconduct

Answer 64

Remedies at Equity

Question 65

Define: promissory estoppel

Answer 65

even if no written agreement is in place, a promise must be enforced if one party would otherwise incur substantial detriment

Question 66

Define: adhesion contract

Answer 66

written by one party to another party under circumstances of no negotiation

Question 67

Define: doctrine of unconscionability

Answer 67

gives someone the right to resist enforcement of poorly written contract

Question 68

Term for: breach caused minimal damages

Answer 68

Nominal damages

Question 69

Define: Compensatory damages

Answer 69

breach caused significant financial detriment

Question 70

Term for: breaching party must give up unfair gains

Answer 70

Restitution

Question 71

Define: Law of Agency

Answer 71

Involves situations where agent of owner makes requests for patient care; should have contract outlining this whenever possible