Ch14 Flashcards
Know the definition of an Agent’s authority
Make a legal decision for the principal
Know the factors used to determine a principal’s ratification of an agent’s activities
A principal can ratify agreements only when aware of the key facts
An agreement can be ratified only if the agent purported to act for the principal
The principal must ratify the agreement before the third party involved withdraws
If the agreement between the agent and the third party was required by law to be in writing, such as a sale of real estate, the ratification must be in writing
Know what the court in Cove Management v. AFLAC said about an agent’s conduct creating apparent authority is
AFLAC was not obligated to the lease cause Galgino did not have apparent authority
Know what apparent authority is
Arises when the principal creates an appearance of authority in an agent that leads a third party to conclude reasonably that the agent has authority to act for the principal
Know what the Lang v. Lions Club of Cudahy Wisconsin, Inc held regarding a subagent enjoying the same immunity the Principal enjoys
Fryed was an agent of the Lions club so could not be sued
In Beef Belt. LLC v. Campbell Burgess, what did the court decide regarding an agent who did not negotiate the contract for the principal
Burgess was not the agent who negotiated the contract os he could not be sued personally
Know what the France v. Southern Equipment Co. Court said regarding a Principal’s liability for actions of an independent contractor
Southern Equipment was not liable because they did not engage Royalty Builders to do the work and they had no control over Royalty Builder
Know the determinative factor in deciding whether a master-servant relationship exists
Control, when they work and where they work
Know the least determine factor in deciding if an employer has hired an employee or an independent contractor
Compensation
Are employers liable for torts committed by employees in the scope of their employment?
Yes
Know that at-will employment means employees can be fired for any reason or no reason. Even if the reason they are fired is a morally wrong one
at-will employment means employees can be fired for any reason or no reason. Even if the reason they are fired is a morally wrong one
Know what happens when employment at will is limited by an express contract
Employer and employe agreed on employment for a guaranteed time
Know what happens when employment at will is limited by an implied contract
May restrict grounds for termination or require specific procedures to be followed in a dismissal
Know what Guz v. Bechtel National held regarding firing an employee in violation of an implied covenant of good faith and fair dealing
Guz sued Bechtel, claiming that his layoff breached an implied contract to be terminated only for good cause. Guz also claimed that the implied covenant of good faith and fair dealing precluded Bechtel from terminating him arbitrarily or in bad faith. The trial court granted summary judgment in favor of Bechtel.
What can employee handbooks do to at will employment?
Can change at will employment
Will signal disclaimers regarding employee handbooks stop employers from making implied contracts that limit at will employment?
Yes
Know the common problems with employee handbooks
Using boilerplate forms that include material not relevant to the employer
Making promises about discipline procedures that are not followed consistently
Creating probationary periods that imply permanent status once probation has ended
Failing to change the handbook to comply with state and federal laws as they change
Listing specific offenses for which people may be fired, creating the impression those are the only offenses that matter
Not giving a clear at-will employment statement and failing to specify that the employer has the right to change the terms at any time without notice
Do torts committed by agents outside the scope of their employment create liability for the Principal/Employer?
No
If a potential employee has a history of problems related to a potential job, does an employer have a duty to not hire them? What is this called?
Yes, Negligent hiring
