Chapter 16: Legal Guidelines and Business Considerations Flashcards
Contract
A binding agreement between two or more persons that is enforceable by law composed of an offer, acceptance, and consideration (or what each party puts forth to make the agreement worthwhile).
Risk Management
Minimizing the risks of potential legal liability.
Employees
A person who works for
another person in exchange for financial compensation,
Standard of care
Appropriateness of an exercise professional’s actions in light of current professional standards and based on the age, condition, and knowledge of the participant,
Sole proprietorship
A business owned and operated by one person,
Corporation
A legal entity, independent of its owners and regulated by state laws; any number of people may own a corporation through shares issued by the business.
Partnership
A business entity in which two or more people agree to operate a business and share profits and losses.
Limited Partner
An individual who retains no legal liability beyond his or her initial investment and does not have any formal input regarding partnership operations.
Limited Liability Company
A company that limits investors’ personal financial and legal liabilities but provides flow-through taxation for investors.
Limited Liability Partnership
A partnership in which some or all partners (depending on the jurisdiction) have limited liability; exhibits elements of both partnerships and corporations.
Subchapter S-Corporations
A corporation that does not pay any income taxes.
C-corporation
A corporation that is designed to operate in multiple countries and with various types of investors.
Double taxation
The imposition of taxation on corporate earnings at both the corporate level and again as a stockholder dividend.
License
Any business, organization, or individual that has been granted legal permission by another entity to engage in an activity.
Affiliate
A facility or business that is connected or attached to a larger organization or company.
Negligence
Failure of a person to perform as a reasonable and prudent professional would perform under similar circumstances.
Certification
A credential attesting that an individual or organization has met a specific set of standards.
Informed Consent
A written statement signed by a client prior to testing that informs him or her of testing purposes, processes, and all potential risks and discomforts.
Corporate Veil
Shields individual investors in a corporation from financial or legal liability beyond their initial investment.
Liability
Legal Responsibility
Agreement to participate
Signed document that indicates that the client is aware of inherent risks and potential injuries that can occur from participation.
Waiver
Voluntary abandonment of a right to file suit; not always legally binding.
Exculpatory Clause
A clause within a waiver that bars the potential plaintiff from recovery,
Gross Negligence
A form of negligence
that is worse than normal negligence.
Group Waiver
Waiver that includes lines for multiple signatures.
General Partnership
A type of business arrangement in which each partner assumes management responsibility and unlimited liability and must have at least a 1% interest in profit and loss.
Contributory Negligence
A legal defense used in claims or suits when the plaintiff’s negligence contributed to the act in dispute.
Comparative Negligence
A system used in legal defenses to distribute fault between an injured party and any defendant.
Inherent Risks
Risks that can occur through normal participation in the stated activity. Inherent risks can only be avoided by declining to participate.
Statute of Limitations
A formal regulation limiting the period within which a specific legal action may be taken,
General Supervision
A method of supervision where the worker (or trainee) does not require the constant attendance of the supervisor (or trainer).
Specific Supervision
A method of supervision where the worker (or trainee) requires direct involvement of the supervisor (or trainer).
Anorexia
An eating disorder characterized by refusal to maintain body weight of at least 85% at expected weight.
Bulimia
An eating disorder characterized by recurrent episodes of uncontrolled binge eating.
Binge Eating Disorder
An eating disorder characterized by frequent binge eating (without purging) and feelings of being out of control when eating.
Keyman Insurance
insurance that compensates a company for the loss of a representative of the company who was performing unique and valuable functions.
Professional Liability Insurance
Insurance to protect a trainer/instructor against professional negligence or failure to perform as a competent and prudent professional would under similar circumstances,
Umbrella Liability Policy
insurance that provides additional coverage beyond other insurance such as professional liability, home, automobile, etc.
Product Liability Insurance
insurance that covers damages occurring due to product failure.
Royalty
A payment made to the owner of a copyright, patent, or trademark in exchange for use of the protected intellectual property; typically a percentage of each sale.
