Exam Review SU#16 Flashcards
Under the Federal Insurance Contributions Act (FICA) the following are considered wages
- Commissions
- Bonuses
- Contingent Fees
- Vacation Pay
- Severance Allowances
- Tips
“reimbursed travel expenses are NOT part of wages”
If an broker enters into a contract with a seller on a corporations behalf
The broker will have the same actual authority as if the Corps. identity had been disclosed.
Actual Authority: is conveyed by the principal’s giving express or implied consent to the agent to bind the principal to 3rd parties. Actual authority is not affected by failure to disclose the principal
A prerequisite for the creation of an agency relationship is
The principal must have capacity.
An agency may be implied in law without intent to form the relationship.
A person may be held liable as a principal for the act of another person even though she did not intend to grant any authority
A Durable Power of Attorney is effective during a period of
incapacity of the principal.
A general Power of Attorney
authorizes the agent to do anything that may be necessary to transact the principal’s affairs
If the principal is sued for the agents negligence
the principal has the right to indemnification from the agent
Vicarious Liability
prevents individuals from avoiding liability for a tort by hiring an agent to perform the act
A principal is liable for his or her conduct
The agent is not liable for a crime committed by the agent, but may be held criminally liable for a crime of the agent if
- the principal approves or directs the crime
- The principal participates or assists in the crime
- Violation of regulatory statute constituted the crime
Section 1 of the Sherman Act of 1890 addresses
vertical restraints imposed by parties that are not in direct competition at the same functional level of distribution
Section 2 of the Sherman Act of 1890
applies to acts of one party
Under the Sherman Act of 1890, some arrangements among competitors are
illegal per se.
The Clayton Act prohibits
- Exclusive dealing
- Price discrimination among different buyers
- Interlocking directorates
The Robinson-Patman Act of 1936 amended the Clayton Act with respect to
price discrimination. Price discrimination involving commodities of like grade & quality is illegal if the effect is to substantially lessen competition or create a monopoly
The fair Labor Standards Act of 1938 applies to
employer with at least $500,000 in sales or that is engaged in interstate commerce
The Family & Medical Leave Act of 1993 (FMLA) entitles an eligible employee to
12 work weeks of leave without pay & without losing his or her job
- the birth of a child
- a serious health condition
- the care of a spouse, son, daughter, or parent who has a serious health condition
The authority of OSHA is
authorized to establish standards that protect employees from exposure to substances that may be harmful to their health
- OSHA was established by congress to develop safety standards, prevent injuries, and promote job safety
- OSHA is authorized to develop detailed health and safety standards & to enforce them through fines & other sanctions
- The act requires employers to provide employees with a workplace free from recognized hazards & substances that are likely to cause death or serious physical harm
An agency relationship is terminated by operation of law if
- Principal’s death
- Principal’s incapacity
- Agents failure to acquire a necessary business license
The Occupational Safety & Health Act
Prohibits an employer from discharging an employee for revealing violations of the act
The remedies available to a principal when an agent fraudulently breaches a fiduciary duty is
- Termination of the agency
2. Constructive Trust
A employer who fails to withhold FICA taxes from covered employees wages, but who pays both the employer and employee shares will
Have a right to be reimbursed by the employees from employees share. An employer is primary liable to pay an employees share of FICA tax if the employer fails to pay and remit it. The employer then has the right to reimbursement of the amount paid
Under the ADEA Age discrimination in Employment Act the following practice is prohibited
- Compulsory Retirement of Employees below the Age of 70 is prohibited
- It intended to prevent arbitrary discrimination based on age.
- However, it allows an employer to discharge an employee for good cause
Workers compensation acts require an employer to
Provide coverage for all eligible employees
Universal Agent
is a person who is authorized to conduct all of the principal’s business that the principal my legally delegate
