Exam 4 Study Guide

Question 1

What is agency?

Answer 1

consensual relationship authorizing one party (agent) to act on behalf of the other party (principal)
“relationship between agent and principal”

Question 2

What is power of attorney

Answer 2

document that allows you to appoint a person or organization to manage things if you become unable to

Question 3

What is durable power of attorney?

Answer 3

to appoint an agent, such as a trusted friend or relative, to handle specific health, legal, financial responsibilities
(voidable)

Question 4

Name four possible legal statuses of a person involved with a partnership
?????

Answer 4

Name four possible legal statuses of a person involved with a partnership
?????

Question 5

Employee vs Independent contractor

Answer 5

employees- agents, vacation time, benefits, control means, manner of job

Independent- pay own taxes, no benefits, do things on own time, do not have control means or manner in job

Question 6

employee vs partnership

Answer 6

to be partnership- have to share profit AND control

Question 7

black letter law

Answer 7

elements of the law are free from dispute/doubt- accepted by judge

Question 8

black letter law

Answer 8

elements of the law are free from dispute/doubt- accepted by judge