Business Law and Ethics Exam 4
UPDATED Study Guide QUESTIONSAND
CORRECT ANSWSER
Agency - CORRECT ANSWERS the consensual relationship that the
principal and agent may form by contract or agreement
Independent Contractor - CORRECT ANSWERS a person who
contracts with another to do a particular job and who is not subject to the
control of the other
Gratuitous Agency - CORRECT ANSWERS Agency created without
compensation to agent is subject to the same duty of loyalty as other agents
Independent Contractor or Employee Determination Factors - CORRECT
ANSWERS -Is the principal in business or not?
-Is payment by the job or by time worked?
- Is the work part of the regular business of the principle?
What do Courts consider in Independent Contractor or Employee
Determination? - CORRECT ANSWERS the extent of control which, by
the agreement, the one who hired the work may exercise over the details of the
work; (b) whether the one employed is engaged in a distinct occupation; (c) the
kind of occupation, with reference to whether the work is usually done under
the direction of the employer or by a specialist without supervision; (d) the skill
required in the particular occupation; (e) whether the employer or worker
supplies the tools and place of work; (f) the length of time involved; (g) the
method of payment (by the time or the job); (h) whether the work is a part of the
regular business of the employer; (i) whether the parties believe they are
creating an employment relationship; and (j) whether the principal is or is not in
business
, 3 basic elements of agency - CORRECT ANSWERS • Assent.
• Control by the Principal.
• Agent's Acting on Behalf of the Principal
Durable Power of Attorney - CORRECT ANSWERS An instrument that
evidences an agent's appointment and states the nature or extent of the agent's
authority
Duty of Obedience - CORRECT ANSWERS Agent must act in
principal's affairs only as authorized by the principal and must obey all
reasonable instructions and directions
Duty of Good Conduct - CORRECT ANSWERS An agent has a duty to
act reasonably and to avoid conduct that is likely to damage the principal's
interests or reputation
Duty of Confidentiality - CORRECT ANSWERS Part of this
requirement includes keeping unique business methods and customer lists
confidential
Fiduciary - CORRECT ANSWERS someone who acts for someone
else's benefit while placing their own interests secondary to that person's
interests. A fiduciary relationship is one of utmost trust and confidence, loyalty
and good faith.
Fiduciary Duty - CORRECT ANSWERS agent owes a duty of utmost
loyalty and good faith to the principal
Elements of a Breached Fiduciary - CORRECT ANSWERS • The agent
competes with the principal
• The agent makes a secret profit
UPDATED Study Guide QUESTIONSAND
CORRECT ANSWSER
Agency - CORRECT ANSWERS the consensual relationship that the
principal and agent may form by contract or agreement
Independent Contractor - CORRECT ANSWERS a person who
contracts with another to do a particular job and who is not subject to the
control of the other
Gratuitous Agency - CORRECT ANSWERS Agency created without
compensation to agent is subject to the same duty of loyalty as other agents
Independent Contractor or Employee Determination Factors - CORRECT
ANSWERS -Is the principal in business or not?
-Is payment by the job or by time worked?
- Is the work part of the regular business of the principle?
What do Courts consider in Independent Contractor or Employee
Determination? - CORRECT ANSWERS the extent of control which, by
the agreement, the one who hired the work may exercise over the details of the
work; (b) whether the one employed is engaged in a distinct occupation; (c) the
kind of occupation, with reference to whether the work is usually done under
the direction of the employer or by a specialist without supervision; (d) the skill
required in the particular occupation; (e) whether the employer or worker
supplies the tools and place of work; (f) the length of time involved; (g) the
method of payment (by the time or the job); (h) whether the work is a part of the
regular business of the employer; (i) whether the parties believe they are
creating an employment relationship; and (j) whether the principal is or is not in
business
, 3 basic elements of agency - CORRECT ANSWERS • Assent.
• Control by the Principal.
• Agent's Acting on Behalf of the Principal
Durable Power of Attorney - CORRECT ANSWERS An instrument that
evidences an agent's appointment and states the nature or extent of the agent's
authority
Duty of Obedience - CORRECT ANSWERS Agent must act in
principal's affairs only as authorized by the principal and must obey all
reasonable instructions and directions
Duty of Good Conduct - CORRECT ANSWERS An agent has a duty to
act reasonably and to avoid conduct that is likely to damage the principal's
interests or reputation
Duty of Confidentiality - CORRECT ANSWERS Part of this
requirement includes keeping unique business methods and customer lists
confidential
Fiduciary - CORRECT ANSWERS someone who acts for someone
else's benefit while placing their own interests secondary to that person's
interests. A fiduciary relationship is one of utmost trust and confidence, loyalty
and good faith.
Fiduciary Duty - CORRECT ANSWERS agent owes a duty of utmost
loyalty and good faith to the principal
Elements of a Breached Fiduciary - CORRECT ANSWERS • The agent
competes with the principal
• The agent makes a secret profit
