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Business law > Test 3 > Flashcards

Test 3 Flashcards

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1
Q

What is agency

A

Consensual, voluntary, fiduciary relationship recognized by law between a principal with the right to control the actions of the agent

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2
Q

Employees are?

A

All Employees are agents but not all agents are employees

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3
Q

Determining whether the principal is liable to a third party for breach of contract tract is based on what?

A

Authority given by the principal to the agent

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4
Q

3 types of Actual authority

A

Express: oral or written agreement
Incidental: reasonably necessary for job (re agent)
Implied: from past dealings

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5
Q

3 types of Actual authority

A

Express: oral or written agreement
Incidental: reasonably necessary for job (re agent)
Implied: from past dealings

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6
Q

4 types of circumstantial authority

A

Apparent
Estoppel
Ratification
Emergency

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7
Q

What is apparent authority

A

Law implies agency where none existed to prevent injustice to a third party

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8
Q

What is estoppel authority

A

Legally barred from claiming lack of authority
State Farm story

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9
Q

What is ratification authority

A

Principal accepts the actions of the agent after the fact.

Booked books by secretary that boss used.

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10
Q

What is emergency authority

A

Agent takes reasonable and necessary actions in an emergency to protect the principals interest.

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11
Q

What are the 5 exceptions when an agent can be held liable to a third party

A

Undisclosed principal
Partially disclosed principal.
Agent makes a personal promise
Agent commits forgery
Agent signs negotiable instrument and a third party pays value for it. (Check)

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12
Q

When is a principal Liable to a third party for a tort committed by the agent

A

Direct liability
Respondeat Superior
Agent was acting in the scope of his employment

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13
Q

What are the 4 forms of direct liability a principle can commit to make him culpable of an agents tort

A

Authorization
Ratification
Negligent hiring
Negligent supervision

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14
Q

What is respondeat superior

A

“Let the master respond”
I direct or vicious liability, principle had done nothing wrong but held liable for acts of agent
That not used when there is no direct liability
Based on degree of control principle has

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15
Q

Definition of partnership

A

An association of 2+ persons to carry in a business as co-workers for a profit

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16
Q

4 requirements of a partnership

A

2+ persons, companies etc
Continuous not a hobby
Sharing of profits
Not charitable

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17
Q

4 requirements of a partnership

A

2+ persons, companies etc
Continuous not a hobby
Sharing of profits
Not charitable

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18
Q

What does UPA stand for

A

Uniform partnership act

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19
Q

What does the UPA do

A

Governs partnership formation, operation and termination.
48 states

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20
Q

Partnership property is where in the UPA

A

Section 8

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21
Q

Section 8 of the UPA says what?

A

Partnership property defined
All prop originally contributed is capital contribution
All prop acquired on of account of the p-ship
All prop acquired with p-ship funds
Any interest in real estate acquired in p-ship name
Any conveyance of property in p-ship name

22
Q

What does a partner own and not own in a partnership

A

Own his share of profits only
No non-rata interest in p-ship property
Can not assign, sell or devise by will

23
Q

What are the unless agreed upon otherwise rules

A

Equal voice
Equal share of profits
Share losses in same proportion as profits of not stated 50/50
Books/records kept in central office

24
Q

UPA rules that cannot change

A

Each partner is an agent of the p-ship and other partners while acting on p-ship business
Each partner personally and unlimitedly liable for torts and contracts of the p-ship
Partners must give duty of loyalty to p-ship and may not compete

25
Q

5 rights of all partners

A

Reimbursement of personal funds used
Return of capital contributions at termination of p-ship if available
Access to properly kept books
Use and possession of property for p-ship purposes
An accounting

26
Q

What is an accounting

A

Formal court proceeding to determine unfairness by a third party agent of the court who will create a master report

27
Q

What appear to be partnerships but are not

A

Joint ventures
Mining partnerships
Limited partnerships
Limited liability partnerships

28
Q

What is the duty of all partners

A

Every partner owes agency to the partnership

29
Q

What are the exceptions to agency within a partnership

A

Assign partnership property for benefit of creditors
Dispose of goodwill
Do anything to make it impossible to carry on business
Confess a judgement against the p-ship
Submit a partnership claim to arbitration

30
Q

5 ethical theories

A

Rights
Justice
Utilitarianism
Shareholder
Virtue

31
Q

What is rights theory

A

Focuses on rights of the individual
Life, freedom and property
Based on respecting and protecting these rights

32
Q

What is justice theory

A

Emphasizes fairness and equality
Decisions ensure equitable treatments
Often associated with John Rawls

33
Q

What is utilitarianism

A

Maximize overall happiness
Focuses on outcomes and consequences
Jeremy Bentham and John Stuart Mill

34
Q

What is shareholder theory

A

Primary responsibility of a business is to its shareholders
Maximizing shareholder value
Milton Friedman

35
Q

What is virtue theory

A

Focuses on character and virtues
Ethics are based on being rather than doing
Aristotle and concept of virtuous living

36
Q

How can you curb CEO power

A

Corporate boards
Satbanes-Oakley act - companies must have audit committees of independent directors

37
Q

Steps to ethical decision making

A

Impact of my decision
Alternatives
Who is a stakeholder
How do alternatives impact society
How do alternatives impact my business
How do the alternatives impact me
What are the ethics of alternatives
Practical restraints of each alternative
What course of action do I take and how

38
Q

Characteristics of poor decision making

A

Failing to remember goals
Overconfidence
Complexity of the issues

39
Q

Strategies for ethical action

A

Resist requests to act unethically
Buy time
Recognize unethical requests
Find win win situations
Create a peer support group
Be willing to lose your job
Consult the firms ethics officer
Work within the firm to stop unethical acts
Have a mentor

40
Q

Non sequiturs

A

Conclusions that do not follow logically from the premise

41
Q

Appeals to pity

A

Attempting to persuade by eliciting sympathy rather that facts

42
Q

False analogy

A

Comparing two things that are not truly comparable

43
Q

Begging the question

A

Assuming truth if the conclusion within the premise

44
Q

Argumentum ad baculum

A

Using threats or force to support argument

45
Q

Argumentum ad hominem

A

Attacking the person

46
Q

Argument to authority

A

Relying on the opinion of an authority figure rather than evidence.

47
Q

False cause

A

Presuming that a real or perceived relationship between things means that one causes the other

48
Q

Gamblers fallacy

A

Believing past random results affect future ones

49
Q

Reduction ad adsurdum

A

Disproving a statement by showing it lands to absurd or impractical conclusions

50
Q

Appeals to tradition

A

Arguing something is correct because it has always been done that way

51
Q

The lure of the new

A

Assuming that newer is better

52
Q

Sunk cost fallacy

A

Continuing a course of action due to sunk costs.

Business law (3 decks)

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