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Flashcards in Final Exam Deck (87)
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1

What is the difference between an independent contractor and an employee

an employee the employer has all control over them. like how many hours they work and the tools they use

2

What are the four ways to form an agency

express
ratification
estopel
by law

3

What is an agency by ratification

principle didn't tell you that you were an agent and after the fact the principle approves the acts of the agent

4

What is an agency by estopel

caused a 3rd person to believe that someone was your agent

5

What is an agency by operation of law

example would be a husband and wife

6

What are the Agent;s duty to the principle

Performance
Notification - tell any information you learn to the principle
Loyalty - solely loyal to the principle and maintain confidentiality
Obedience - follow all lawful instructions
Accounting - any money in and out - and no commingling of funds

7

What are the Principle's Duties to the Agent

Compensation
Reimpursement
Indemnification - agent acting on your behalf incurs liability you have to pay them
Cooperation - given particular job to to
Safe working conditions

8

What are the Agent's Rights

normal contract remedies
demand in accounting - in commissions
no specific performance

9

What are the principle's Right s

Constructive trust - not all money agent collects turned in
Avoidane - agent breach contract you can rip it up

10

What is express athority

written/oral detailed instructions

11

agent has power to bind you to a contract that authority must be in writing

equal dignaty rule

12

principle is knowm and agent is not liable

disclosed principle

13

agentknow that the agent is representing someone else agent is liable

partialy disclosed

14

no reason to know of principle/agent relationship agent is liable

undisclosed

15

What are the ways to terminate an agency by Act of the Parties

Lapse of Time
Purpose Achieved
Occurenc of a specific event
mutual agreement
at the option of one party

16

What are the ways to terminate the agency by operation of law

death or insanity
Impossibility - destruction of the subject matter
Changed circumstances
Bankruptcy
War between the principles contry and agent's country

17

What are the advantages to a sole proprietor shi p

flexibility and earnings are only taxed once

18

what are the disadvantages to a sole proprietor ship

personally liable for debt of the business and difficult to raise capitol

19

type of franchise wher manufacturer licenses a dealer to sell its product

distributorship

20

type of franchise where franchise operatites under a trade name and is identified as amember fo a slelect grop of dealers that engage in the franchisor's business

chain style

21

type of franchise where manufacturing or processing plant aragnement the franchisor transmits to the franchisee the essential ingredients or formula to make a particular produc t

manufacturing arangement

22

franchisor has total control of franchisee

franchise rule

23

how do you terminate a franchise

governed by contract law

24

what is a pass through entity

profits pass through to owners

25

What happens if partnership is not expressed inwrithing

equal mgmt rights
and equal profit rights
any partner can bind in a contract

26

what does joint and severally liable

partners are liable for the entire debt but you could be responsible for the entire amount if other partners can't pay

27

professionals are only liable for there negiligence and not the negligence of their partners

LLP

28

partners's liablity is limited to the amount they have invested into the compny

LP

29

Why are LLC's popular

governed by state statute
owners are called members
protection of a corporation
taxed as corporation or partnership

30

one transaction or short brief group of transactions taxed like a partnership have a duty of loayalty and can be held personally liable

Joint Venture