LECOM HEALTHCARE MANAGEMENT
II EXAM QUESTIONS AND ANSWERS
Contract - Correct Answers -agreement between 2 or more parties creating obligations
that are enforceable in court or otherwise recognizable at law.
What questions should you consider about contracts? - Correct Answers -Is document
employer or employee friendly? What is effective duration from the employee's point of
view? How much discretion has the employer retained? What may be the worst
provision for the employee
How is a consulting agreement different from an employee agreement? - Correct
Answers -amount of control, compensation and benefits, duration of the relationship,
nature of the work.
Right to control - Correct Answers -whether the employee has control of the manner in
which the work is to be done or simply responsibility for a given result
Factors in legal distinction between independent contractor and employee - Correct
Answers -1. right to control
2. terms of agreement
3. nature of the work or employee's "occupation" including the skill required for
performance and whether the employee is engaged in distinct occupation or business.
4. Whether employee supplies needed tools/equipment
5. whether payment is by hour or job
6. whether work is pat of regular business of the employer
7. whether the employer has the right to terminate the employment at any time.
Essential Elements of a Contract - Correct Answers -1. Offer & Acceptance
2. Consideration
3. Competent Parties
4. Reality of Consent
5. Legal Purpose
what is it called when you break a contract? - Correct Answers -breach of contract
types of contracts - Correct Answers -written, oral, implied (quasi)
Contract Issues - Correct Answers --lack of mutual assent
,-illegal
-do not have mental capacity
-coercion
-fraud
-statute of frauds
-parole evidence rule
parol evidence rule - Correct Answers -A substantive rule of contracts under which a
court will not receive into evidence the parties' prior negotiations, prior agreements, or
contemporaneous oral agreements if that evidence contradicts or varies the terms of the
parties' written contract.
Statute of Frauds - Correct Answers -A state statute under which certain types of
contracts must be in writing to be enforceable.
breach - Correct Answers -failing to perform any term of a contract, written or oral,
without a legitimate legal excuse; Damages may be awarded: expectation, liquidaded,
consequential, punitive
expectation damages - Correct Answers -actual damages, compensation for actual
losses
liquidated damages - Correct Answers -A contract provides a specific amount to be paid
as damages in the event of future default or breach of contract.
Consequential Damages - Correct Answers -Special damages that compensate for a
loss that is not direct or immediate (for example, lost profits). The special damages must
have been reasonably foreseeable at the time the breach or injury occurred in order for
the plaintiff to collect them; usually not awarded.
Resident/Intern Contract Issues - Correct Answers -written is best, especially if longer
than an hour. restrictions for specification of hours are best. W-2 is best because certain
benefits are possible. Term should be defined (july 1-June 30).
stipend - Correct Answers -payment of living expenses during consideration
Pre-Employment issues - Correct Answers -1. pre-existing restrictions on candidate?
2. compliance with common law obligations to former employers?
3. required skills
4. have the chemistry?
5. is the candidate willing to enter into a covenant?
Typical Term in Employment Contracts - Correct Answers --term of employment
-capacity/duties/authority
-location of work
-compensation
, -benefits
-stock
-termination provisions
convenants - Correct Answers -promises, legally
indemnification - Correct Answers -protection in case of lawsuit; who will pay damages
choice of law - Correct Answers -what state law will apply if a lawsuit ensues
integration clause - Correct Answers -merger clause, prevents saying that contract does
not reflect their understanding, is not consistent with prior agreements or cannot be
changed by later party
ADR provision - Correct Answers -How we're going to resolve disputes; for example,
arbitration
arbitration - Correct Answers -settling a dispute by agreeing to accept the decision of an
impartial outsider; compliance to arbitration is part of the ADR Provision
notice provision - Correct Answers -how info is delivered b/w parties to the contract
409A - Correct Answers -defers compensated plans; employee has binding right to an
amount but in which tax year it is given/applied to is specified
Incapacity - Correct Answers -family medical leave act and americans with disabilities
act may provide protections against this; termination provision
termination for cause - Correct Answers -job loss that occurs when an individual is fired
from an organization for a particular reason; the individual has usually been warned one
or more times about a problem and either cannot or will not correct it; may be listed in
the contract (felonies, violation of duty, etc)
termination w/o cause - Correct Answers -w/o contract, this may be allowed for any
reason except for those protected by law. usually specified in contracts.
resignation with good reason - Correct Answers -failure of company to abide by contract
w/ certain time specified to fix the problem,
resignation w/o good reason - Correct Answers -terms of this may be specified in
contract; termination provision; ex. only gets payment for work only completed
death - termination provision - Correct Answers -terms about what happens = prorated
payment or how long a spouse may get paid
II EXAM QUESTIONS AND ANSWERS
Contract - Correct Answers -agreement between 2 or more parties creating obligations
that are enforceable in court or otherwise recognizable at law.
What questions should you consider about contracts? - Correct Answers -Is document
employer or employee friendly? What is effective duration from the employee's point of
view? How much discretion has the employer retained? What may be the worst
provision for the employee
How is a consulting agreement different from an employee agreement? - Correct
Answers -amount of control, compensation and benefits, duration of the relationship,
nature of the work.
Right to control - Correct Answers -whether the employee has control of the manner in
which the work is to be done or simply responsibility for a given result
Factors in legal distinction between independent contractor and employee - Correct
Answers -1. right to control
2. terms of agreement
3. nature of the work or employee's "occupation" including the skill required for
performance and whether the employee is engaged in distinct occupation or business.
4. Whether employee supplies needed tools/equipment
5. whether payment is by hour or job
6. whether work is pat of regular business of the employer
7. whether the employer has the right to terminate the employment at any time.
Essential Elements of a Contract - Correct Answers -1. Offer & Acceptance
2. Consideration
3. Competent Parties
4. Reality of Consent
5. Legal Purpose
what is it called when you break a contract? - Correct Answers -breach of contract
types of contracts - Correct Answers -written, oral, implied (quasi)
Contract Issues - Correct Answers --lack of mutual assent
,-illegal
-do not have mental capacity
-coercion
-fraud
-statute of frauds
-parole evidence rule
parol evidence rule - Correct Answers -A substantive rule of contracts under which a
court will not receive into evidence the parties' prior negotiations, prior agreements, or
contemporaneous oral agreements if that evidence contradicts or varies the terms of the
parties' written contract.
Statute of Frauds - Correct Answers -A state statute under which certain types of
contracts must be in writing to be enforceable.
breach - Correct Answers -failing to perform any term of a contract, written or oral,
without a legitimate legal excuse; Damages may be awarded: expectation, liquidaded,
consequential, punitive
expectation damages - Correct Answers -actual damages, compensation for actual
losses
liquidated damages - Correct Answers -A contract provides a specific amount to be paid
as damages in the event of future default or breach of contract.
Consequential Damages - Correct Answers -Special damages that compensate for a
loss that is not direct or immediate (for example, lost profits). The special damages must
have been reasonably foreseeable at the time the breach or injury occurred in order for
the plaintiff to collect them; usually not awarded.
Resident/Intern Contract Issues - Correct Answers -written is best, especially if longer
than an hour. restrictions for specification of hours are best. W-2 is best because certain
benefits are possible. Term should be defined (july 1-June 30).
stipend - Correct Answers -payment of living expenses during consideration
Pre-Employment issues - Correct Answers -1. pre-existing restrictions on candidate?
2. compliance with common law obligations to former employers?
3. required skills
4. have the chemistry?
5. is the candidate willing to enter into a covenant?
Typical Term in Employment Contracts - Correct Answers --term of employment
-capacity/duties/authority
-location of work
-compensation
, -benefits
-stock
-termination provisions
convenants - Correct Answers -promises, legally
indemnification - Correct Answers -protection in case of lawsuit; who will pay damages
choice of law - Correct Answers -what state law will apply if a lawsuit ensues
integration clause - Correct Answers -merger clause, prevents saying that contract does
not reflect their understanding, is not consistent with prior agreements or cannot be
changed by later party
ADR provision - Correct Answers -How we're going to resolve disputes; for example,
arbitration
arbitration - Correct Answers -settling a dispute by agreeing to accept the decision of an
impartial outsider; compliance to arbitration is part of the ADR Provision
notice provision - Correct Answers -how info is delivered b/w parties to the contract
409A - Correct Answers -defers compensated plans; employee has binding right to an
amount but in which tax year it is given/applied to is specified
Incapacity - Correct Answers -family medical leave act and americans with disabilities
act may provide protections against this; termination provision
termination for cause - Correct Answers -job loss that occurs when an individual is fired
from an organization for a particular reason; the individual has usually been warned one
or more times about a problem and either cannot or will not correct it; may be listed in
the contract (felonies, violation of duty, etc)
termination w/o cause - Correct Answers -w/o contract, this may be allowed for any
reason except for those protected by law. usually specified in contracts.
resignation with good reason - Correct Answers -failure of company to abide by contract
w/ certain time specified to fix the problem,
resignation w/o good reason - Correct Answers -terms of this may be specified in
contract; termination provision; ex. only gets payment for work only completed
death - termination provision - Correct Answers -terms about what happens = prorated
payment or how long a spouse may get paid
