Test 3 Flashcards
What is agency
Consensual, voluntary, fiduciary relationship recognized by law between a principal with the right to control the actions of the agent
Employees are?
All Employees are agents but not all agents are employees
Determining whether the principal is liable to a third party for breach of contract tract is based on what?
Authority given by the principal to the agent
3 types of Actual authority
Express: oral or written agreement
Incidental: reasonably necessary for job (re agent)
Implied: from past dealings
3 types of Actual authority
Express: oral or written agreement
Incidental: reasonably necessary for job (re agent)
Implied: from past dealings
4 types of circumstantial authority
Apparent
Estoppel
Ratification
Emergency
What is apparent authority
Law implies agency where none existed to prevent injustice to a third party
What is estoppel authority
Legally barred from claiming lack of authority
State Farm story
What is ratification authority
Principal accepts the actions of the agent after the fact.
Booked books by secretary that boss used.
What is emergency authority
Agent takes reasonable and necessary actions in an emergency to protect the principals interest.
What are the 5 exceptions when an agent can be held liable to a third party
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)
When is a principal Liable to a third party for a tort committed by the agent
Direct liability
Respondeat Superior
Agent was acting in the scope of his employment
What are the 4 forms of direct liability a principle can commit to make him culpable of an agents tort
Authorization
Ratification
Negligent hiring
Negligent supervision
What is respondeat superior
“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
Definition of partnership
An association of 2+ persons to carry in a business as co-workers for a profit
4 requirements of a partnership
2+ persons, companies etc
Continuous not a hobby
Sharing of profits
Not charitable
4 requirements of a partnership
2+ persons, companies etc
Continuous not a hobby
Sharing of profits
Not charitable
What does UPA stand for
Uniform partnership act
What does the UPA do
Governs partnership formation, operation and termination.
48 states
Partnership property is where in the UPA
Section 8
Section 8 of the UPA says what?
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
What does a partner own and not own in a partnership
Own his share of profits only
No non-rata interest in p-ship property
Can not assign, sell or devise by will
What are the unless agreed upon otherwise rules
Equal voice
Equal share of profits
Share losses in same proportion as profits of not stated 50/50
Books/records kept in central office
UPA rules that cannot change
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
5 rights of all partners
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
What is an accounting
Formal court proceeding to determine unfairness by a third party agent of the court who will create a master report
What appear to be partnerships but are not
Joint ventures
Mining partnerships
Limited partnerships
Limited liability partnerships
What is the duty of all partners
Every partner owes agency to the partnership
What are the exceptions to agency within a partnership
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
5 ethical theories
Rights
Justice
Utilitarianism
Shareholder
Virtue
What is rights theory
Focuses on rights of the individual
Life, freedom and property
Based on respecting and protecting these rights
What is justice theory
Emphasizes fairness and equality
Decisions ensure equitable treatments
Often associated with John Rawls
What is utilitarianism
Maximize overall happiness
Focuses on outcomes and consequences
Jeremy Bentham and John Stuart Mill
What is shareholder theory
Primary responsibility of a business is to its shareholders
Maximizing shareholder value
Milton Friedman
What is virtue theory
Focuses on character and virtues
Ethics are based on being rather than doing
Aristotle and concept of virtuous living
How can you curb CEO power
Corporate boards
Satbanes-Oakley act - companies must have audit committees of independent directors
Steps to ethical decision making
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
Characteristics of poor decision making
Failing to remember goals
Overconfidence
Complexity of the issues
Strategies for ethical action
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
Non sequiturs
Conclusions that do not follow logically from the premise
Appeals to pity
Attempting to persuade by eliciting sympathy rather that facts
False analogy
Comparing two things that are not truly comparable
Begging the question
Assuming truth if the conclusion within the premise
Argumentum ad baculum
Using threats or force to support argument
Argumentum ad hominem
Attacking the person
Argument to authority
Relying on the opinion of an authority figure rather than evidence.
False cause
Presuming that a real or perceived relationship between things means that one causes the other
Gamblers fallacy
Believing past random results affect future ones
Reduction ad adsurdum
Disproving a statement by showing it lands to absurd or impractical conclusions
Appeals to tradition
Arguing something is correct because it has always been done that way
The lure of the new
Assuming that newer is better
Sunk cost fallacy
Continuing a course of action due to sunk costs.
