BLAW 3310 Test 3 Schwemer Questions And Answers With Verified Solutions Graded A+

Actual vs Apparent Authority - Actual Authority - Given by the principal to the agent; can be express or implied; oral or written. Apparent Authority - When a third party reasonably assumes one is acting as an agent to another. Agency by Operation of Law - Sometimes, an agent is unable to reach the principal and has to make a rational decision quickly. This would be legally acceptable. An example would be an agent who is forced to buy $500 worth of plywood to cover a principal's home during a hurricane, because they are unable to get in contact with them. Agent's duties to the principal - o The agent must place the principal's interests before their own. o The agent must be obedient to the terms laid out by the principal. o The agent must exercise reasonable care in performing duties. o The agent must account for all funds and property that has been trusted in him. o The agent must keep her principal informed of all facts relevant to the agency. At-will Employment - Under American law, employers are allowed to fire their employees at any time (with exceptions), and employees are allowed to leave their jobs at any time (unless they are under contract). Bill of Exchange - International Draft Breach of Duty - failure to do something you are legally responsible for. Business judgement rule - Makes directors and managers of corporations immune from liability when problems result from honest mistakes in judgement, so long as there is a reasonable basis for the decisions.Chapter 11 Bankruptcy - Applies to businesses; debts are reorganized and no liquidation occurs CHAPTER 12 - CHAPTER 13 - CHAPTER 14 - CHAPTER 15 - CHAPTER 16 - Debts you can't get out of when you declare bankruptcy - o Alimony and child support payments o Back taxes o Most student loans o Some debts incurred immediately before filing bankruptcy o Debts incurred by fraud against the creditors o Fines owed to the government Defenses against discrimination that might be raised by employers (bona fide) - o Ranking system based on job performance. o Only hiring high school or college graduates. o Certain jobs that, by nature, exclude a certain gender, religion, etc. Does an employer have to make accommodations for religious practices? - Not if it's an unreasonable accommodation (example: working for one day a week but being paid for five) Drug testing and when an employer can give it - All companies worth more than $25,000 are legally required to have a "drug-free" workplace, including periodic and random drug tests.Companies that are unionized may not impose a drug-testing program unless approved by the union. During a bankruptcy, who in the company is left in charge? - Managers Exceptions to employment-at-will - o Refusing to commit an illegal act, such as falsifying reports required by a government agency or refusing to commit perjury (lie) at trial o Performing a public duty, such as reporting for jury duty or military service o Exercising a public right, such as filing a claim for workers' compensation or filing for bankruptcy Family and Medical Leave Act - States that employers must grant workers up to 12 weeks of unpaid leave per year after childbirth or adoption; to care for a seriously ill child, spouse, or parent; or for an employee's own serious illness. Applies to employers with 50 or more employees and all government units. Floating Lien - A security interest in a group of property that remains in place even after the exact items in that group of property change Forming a partnership - Either an oral or written agreement must be made between partners. Written is the most formal and may include terms such as finances, management, and terms for dissolution. General Partnership - No state filing needed; is created when two or more partners agree to form. Low startup cost. How many parties are on promissory notes? - Two: The maker and the payee Illegal Strikes - Strikes that are not legally protected, such as sit-in strikes.Implied Contract - A contract that arises based on implied, not expressed, terms