MGMT 311 Exam 4 - FLASHCARDS - Chapter 19

Question 1

Who is a person who has agreed to represent an act on behalf of another?

Answer 1

Agent

Question 2

Who is the person whom the agent represents or acts on behalf of?

Answer 2

Principal

Question 3

Who is a person who has a special duty created by his agreeing to act for the benefit of another?

Answer 3

Fiduciary

Question 4

What are fiduciary relationships based on?

Answer 4

Trust and confidence. Both parties are supposed to be thinking about each other

Question 5

All employees who deal with the third parties (the public) are ______ for a company?

Answer 5

Agents

Question 6

What do agents do?

Answer 6

Deal with the public. Make decisions that effect the company. Liable for contract and tort issues

Question 7

Are agents also known as employees?

Answer 7

Yes

Question 8

What is the main reason contractors are not employees?

Answer 8

not employees because company that hired them does not control the details of their work

Question 9

True or false: contractors are paid project by project, not hourly like an employee?

Answer 9

TRUE

Question 10

What are questions we ask to determine employee status?

Answer 10

1. How much control can the employer exercise over the details of the work? Right to control
2. Is the worker engaged in an occupation or business distinct from that of the employer?
3. Is the work usually done under the employer’s direction or by a specialist without supervision?
4. Does the employer supply the tools at the place of work?
5. For how long is the person employed?
6. What is the method of payment – by time period or at completion of the job?
7. What degree of skill is required of the worker?

Question 11

What is a work for hire?

Answer 11

Work for hire means employer owns it. Employee is doing a work for hire

Question 12

How are employees paid?

Answer 12

Paid by the hour

Question 13

How are independent contractors paid?

Answer 13

Paid by the job. So, employers do not pull out employment taxes from pay checks to Independent Contractors.

Question 14

Can employers pull out employment taxes from pay checks to Independent Contractors?

Answer 14

No

Question 15

True or false: Independent contractors are exempt from overtime pay rules?

Answer 15

TRUE

Question 16

True or false: Agency relationships are usually consentual?

Answer 16

TRUE

Question 17

True or false: agency by agreement can be expressed or implied?

Answer 17

TRUE

Question 18

What is an implied agency agreement?

Answer 18

legally binding, non-verbal, and unwritten agreement that is formed by the actions, conduct, or circumstances of the parties involved.

Question 19

What is an expressed agreement?

Answer 19

agreement between two or more parties that explicitly states the terms of the contract, either orally or in writing.

Question 20

What is an example of an expressed agreement?

Answer 20

A sale of real estate

Question 21

What is agency by ratification?

Answer 21

principal accepts responsibility for agent’s UNauthorized actions

Question 22

What is an example of agency by ratification?

Answer 22

Your daughter takes your credit card without asking and you accept it because she is your daughter

Question 23

True or false: in an Agency by Ratification the Agent’s unauthorized acts are “ratified”?

Answer 23

TRUE

Question 24

What is agency by estoppel?

Answer 24

Sometimes, a principal causes a third person to believe that another person is the principal’s agent, and the third person reasonably relies on that belief. When this occurs, the principal is “estopped to deny” (prevented from denying) the agency relationship.

Question 25

What happens in agency by estoppel?

Answer 25

The principal is trying to deny that an agency relationship exists

Question 26

True or false: In agency by estoppel, the principal’s action creates the appearance of an agency that does not actually exist?

Answer 26

TRUE

Question 27

True or false: the court can apply the doctrine of agency by estoppel when a principal has given a third party reason to believe that an agent has authority to act?

Answer 27

TRUE

Question 28

What is the difference between agency by ratification and agency by estoppel?

Answer 28

In agency by ratification, the principal is willing to accept an agency relationship, just the agent wasn't given permission to do behavior. In agency by estoppel, the principal is trying to deny that an agency relationship exists

Question 29

What is an example of agency by estoppel?

Answer 29

Juanita Alvarez is the owner of six Baja Tacos restaurants. Alvarez (the principal) strictly forbids the restaurant managers (agents) from entering into contracts to hire additional workers. Therefore, the fact that managers customarily would have authority to hire employees is immaterial.

Question 30

What are duties of the agent to the principal?

Answer 30

Performance Notification Loyalty Obedience Accounting

Question 31

What is also known as the duty to inform?

Answer 31

Duty of notification

Question 32

What are duties of the principal to the agent?

Answer 32

Compensation Reinbursement Cooperation Safe working conditions

Question 33

What is agency by operation of law?

Answer 33

An agent is needed due to an emergency

Question 34

True or false: In an Agency by Agreement, the Agent’s authority is either express or implied?

Answer 34

TRUE

Question 35

Is express authority always written?

Answer 35

No. It can be written or oral

Question 36

How is authority in express authority?

Answer 36

Authority is clear, direct and in definite terms

Question 37

What rule tells us when the authority of an agent must be written?

Answer 37

Equal dignity rule

Question 38

What is the equal dignity rule?

Answer 38

in most states IF the contract being executed is or must be in writing, then the agent’s authority must be in writing, too. Like the writing requirement under statute of frauds

Question 39

What does an exception to the equal dignity rule mean?

Answer 39

an executive officer of a corporation can conduct business transactions without written authority

Question 40

What are exceptions to the equal dignity rule where we don't need the written authority of the agent?

Answer 40

1) Agent is an executive officer in a corporation when acting for the corporation in an ordinary business situation. 2) When the agent acts in the principal’s presence. 3) When agent’s act of signing is merely a formality.

Question 41

Do we need the written authority of the agent if the agent acts in the principal’s presence?

Answer 41

No

Question 42

Do we need the written authority of the agent if the agent is an executive officer in a corporation when acting for the corporation in an ordinary business situation?

Answer 42

No

Question 43

Do we need the written authority of the agent if the agent’s act of signing is merely a formality (signing is not legally required)?

Answer 43

No

Question 44

What gives an agent express authority?

Answer 44

Power of attorney

Question 45

What is the best evidence of written express authority?

Answer 45

Power of attorney?

Question 46

What is implied authority?

Answer 46

Authority that is created not by an explicit oral or written agreement but by implication or inference

Question 47

In an agency by estoppel, the agent’s authority is what?

Answer 47

Apparent. A principal has given a third party reason to believe that an agent has authority to act.

Question 48

What does it mean for an agent's authority to be apparent?

Answer 48

Authority of the agent is not real

Question 49

What is an example of apparent authority?

Answer 49

Bailey is a traveling salesperson. She solicits orders for goods but does not carry them with her. She normally would not have the implied authority to collect payments from customers on behalf of the principal. Suppose that she does accept payments from Corgley Enterprises, however, and submits them to the principal’s accounting department for processing. If the principal does nothing to stop Bailey from continuing this practice, a pattern develops over time, and the principal confers apparent authority on Bailey to accept payments from Corgley

Question 50

What is it when Courts hold the Principal liable based on their actions over time?

Answer 50

Pattern of conduct

Question 51

Is pattern of conduct based on agreement?

Answer 51

No

Question 52

In an agency by operation of law, the agent's authority is what?

Answer 52

the agent’s authority is emergency powers (to handle whatever that emergency is)

Question 53

True or false: in agency by operation of law, the agent's authority is limited to a specific emergency?

Answer 53

TRUE

Question 54

What are civil wrongs other than breach of contract such as defamation, assault, and battery?

Answer 54

Torts

Question 55

Can you still be sued if you are the tortfeasor and you are at work?

Answer 55

Yes

Question 56

True or false: employers themselves can committ negligence in hiring or retaining workers?

Answer 56

TRUE

Question 57

What is an employer liable for if they are sued for negligence?

Answer 57

They are being sued for negligence because they are liable for harm caused because they should have known a worker was dangerous or risky

Question 58

What is an employer's duty of due care in hiring workers?

Answer 58

Requiring them to do applications, background checks, interviews, contacting former employers

Question 59

What was Harrison v. Tallahasee Furniture Co.?

Answer 59

hire Turner to be delivery man for them. Do not run background chack, look at references, past employment history. Hired him because someone said he was good. Turner delivers furniture to Mrs Harrison and assaults her in her home. She sues which goes back to Tallahasee Furniture for negligence

Question 60

What is the doctrine of Respondent Superior?

Answer 60

the Employer is liable for any harm caused to a third party by an Employee committed by the Employee within the course and scope of employment.

Question 61

What does the plaintiff have to prove about respondent superior?

Answer 61

1. The employer is liable if the worker is an employee 2. If the harm is committed is under the course and scope of employment

Question 62

Is an employer liable for an employee causing harm to a third party within the course and scope of employment?

Answer 62

Yes

Question 63

Is an employee traveling to and from work acting in course and scope of employment?

Answer 63

No

Question 64

What is the coming and going rule?

Answer 64

employee traveling to and from work is NOT acting in course and scope of employment.

Question 65

If an employee is coming from or going to work and has an accident, is the employer liable?

Answer 65

No, because the employee is not in the course and scope of employment

Question 66

If an employee is on a special errand for their employer at time of accident, is the employer liable?

Answer 66

Yes, because the employee is in the course and scope of employment

Question 67

What is the special errand exception?

Answer 67

if employee is on a special errand for employer at time of accident, employer IS liable.

Question 68

What if an employee has an accident while on a special errand for their employer while going to or from work?

Answer 68

The employer is liable.

Question 69

True or false: if the employee is running a personal arrand for their employer, from the moment the employee leaves their office to the moment they get home, that is all course and scope?

Answer 69

TRUE

Question 70

True or false: both detours and frolics are a personal arrand for the employer?

Answer 70

TRUE

Question 71

What is it called if an employee goes on a personal arrand for their employer, and are still mostly focused on business?

Answer 71

Detour

Question 72

What is it called if an employee goes on an arrand for their employer and they are still considering the effects of their behavior on the employer?

Answer 72

Detour

Question 73

What is it called if an employee goes on a personal arrand for their employer and they really are not considering the effects of their behavior on the employer?

Answer 73

Frolic

Question 74

True or false: with a detour, the employee is outside the course and scope of employment?

Answer 74

FALSE

Question 75

True or false: with a frolic, the employee is outside the course and scope of employment?

Answer 75

TRUE

Question 76

If an employee is focused on the employer's interests on his personal arrand, is he in the course and scope of employment?

Answer 76

Yes. He is on a detour, so he is in the course and scope of employment

Question 77

If an employee is focused on his own private interests while on his arrand for his employer, is he in the course and scope of employment?

Answer 77

No. He is on a frolic, so he is not in the course and scope of employment

Question 78

True or false: under the doctrine of respondent superior, the worker must be an employee?

Answer 78

TRUE

Question 79

Is the person who hires an independent contractor liable if a third party is injured by the acts of the contractor in performing the contract?

Answer 79

No

Question 80

What are exceptions where the person who hires an independent contractor is liable?

Answer 80

Right to Control Inherently Dangerous (or Hazardous) Activities

Question 81

Normally, does an employer have the right to control the details of an independent contractor’s performance?

Answer 81

No

Question 82

If someone hires an independent contractor to do highly dangerous work with toxic or hazardous chemicals, are they liable if someone gets injured?

Answer 82

The person who hired the contractor is liable

Question 83

True or false: if the agent does the crime, the agent does the time?

Answer 83

TRUE