Chapter 17 Flashcards by Sarah Durr

4 elements of negligence

Trainer had a duty to protect the client

Trainer failed to hold up the standard of care

Injury to the client occurred

Injury was caused by trainers breach of duty

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Medium or significant injury or financial impact -

High or often occurrence

Avoid or transfer

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trainer should retain paperwork until _

statute of limitations has passed - the period within which legal action may be taken

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Elements necessary for a binding contract: 4

Offer and acceptance letter

Consideration

Legality

Enter the contract with respect to legal age and mental capacity

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ensure the insurance company will pay even if the trainer fails to _

provide service

failure to render or omission

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If an agreement invokes goods or services worth $ _ or more there must be a _ if the contract is to be valid

$500

Written contract

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Distribution of fault btwn an injured party and any defendant

Comparative negligence

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Neglecting to spot a client during an exercise is considered _

Act of omission

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_ type of business

advantages:
limited liability
unlimited number of investors

Disadvantages:
cost of formation and operation
double taxation

c-corps

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Employers are responsible for the workplace conduct of their employees

Vicarious liability AKA respondeat superior

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_ corporations

EXTENSIVE PAPERWORK

profits taxed as ordinary income

most “typical” type of corporation used by trainers

shielded from personal liability

100 investors or less

investors must be from the U.S.

Subchapter corporations

S-corps

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umbrella policy

provides added coverage for all insurance

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professional liability insurance coverage

$1 million at least

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trainers provide exercise _ and NOT exercise

programs

prescriptions

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This step involves specification of all ricks that may be encountered in the areas of instruction, supervision, facilities, equipment , contracts and business structure

Risk identification

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Continually assess the outcome of risk management

Evaluation

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_partner only liable for their direct financial contribution

may retain more than 50% of the company but does not have formal input into the companies’ operation

limited partner

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when training in home, ensure that a _ will cover those activities

insurance rider - special addition to typical policy

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claims made in the future for injuries during training will be covered after the policy is canceled

extended reporting endorsement

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Business doesn’t pay taxes

Profits are taxed on individual tax return

Loss can be utilized to offset other personal income

Provides benefit to sole proprietorships and partnerships

Flow through taxation

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_ produced a paper on training weight training prepubescent youth

NSCA - national strength and conditioning association

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the best policies cover the cost of _ AND and _

cost of legal fees and any claims awarded

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Proximate causation

Breach of duty

Contracts:

contacts signed by trainer and client

*if client is a minor_

contract must be signed by the parents

_ type of business advantages: flow through taxation limited liability Disadvantages: undefined operating standards in states

LLC/LLP

trainers who sell product need to obtain

product liability insurance

_partnership can be created and recognized by the judicial system if individuals act as partners (sharing checking account, joint signing a business loan)

implied partnership

_ type of business advantages: flow through taxation limited liability Disadvantages: limited # of potential investors costs of formation and opertation

s-corps

trademark should be not be used as a _ but rather an _ to describe a product or service

noun adjective ACE is a registered trademark of the American Council on Exercise

local business will have greater success connecting their facilities to the local communtities

franchising model

Contracts: discuss exercise programs agree on dates and times for workouts

Offer and acceptance letter

Managing and reducing risks: 4

Avoidance - remove possible dangers Transfer - move risk to waivers, insurance policies Reduction - remove part of the activity Retention - retain if the removal of the risk would eliminate potential benefit

Shield individual investors in a corporation from financial or legal liability beyond their initial investment

Corporate veil

compensation to a business for loss of a person that performs unique and valuable function

keyman insurance

_partnerdhip can be created by a contract between the parties

express

Clause within a waiver that bars the potential plaintiff from recovery

Exculpatory clause

_ type of business advantages: easily created flow through taxation Disadvantages: potential management disputes personal liability - except limited partners

partnership

Contracts: stating fee of $ per hour for services establishes

Consideration

_ type of business advantages: easily created and managed flow through taxation Disadvantages: personal liability raising capital

sole propriortership

Contracts: prepare written contracts becomes valid when _

Legality signed by trainer and client

_ protect the trainer from a client claiming to be unaware of the potential risks of physical activity Utilized in _ settings * expected behaviors of the client should be specified

Agreement to participate utilized in class settings

joining of two or more individuals to own and operate a business

general partnership

_ acknowledges that a client has been informed about risks associated with the activity in which they about to engage Detail possible discomfort

Informed consent

A _ will ban the client from seeking damages for injuries caused by inherent risks

Release waiver

appropriateness of trainer's actions in the light of current professional standards and based on age, condition and knowledge of participant

standard of care

Programming straight leg sit ups for a client with known lower back problems is considered _

An act of commission

Separate entity from the investors and the operators of a business Distinct legal entities Regulated by state and federal

Corporations

This step is to Institute a plan

Implementation

High or vital injury or financial impact - Low or seldom occurrence

Transfer - move the risk to others through waivers

profits flow through investors and taxed as ordinary income simple to set up/ easier tax forms protected by corporate veil (2)

LLCs - limited liability companies LLPs limited liability partnerships

health history forms determine client's _, not for providing or recommending treatment for medical conditions

fitness level

trainer failed to act, but client is determined to have played to have PLAYED A ROLE IN THEIR OWN INJURY

Contributory negligence

Trainer must review each risk and probability of it occurring and what would be the severity

Risk evaluation

a business is created when

providing advice for financial consideration

this business structure puts a personal trainer at the GREATEST risk for losing personal assets

sole propriortorship