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Definition
| Cases that have to do with state law (one state suing another or issues dealing with federal law). |
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Definition
| Family Medical Leave Act. Allows pregnant women to take time off of work without being penalized. Employers can be sued in federal court for violating this law. |
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| An out of state attorney who is granted special permission to represent a client in another state even though they're not admitted in that state. They are permitted to practice law in another jurisdiction. |
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| Checks and Balances (3 levels) |
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Definition
1. Executive- president
2. Judicial- court system
3. Legislature- congress/senate (pass statutes) |
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Term
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Definition
| A law that is passed by a governing body (either federal, state, or local). |
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Term
| Which governing body passes statutes? |
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Definition
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Term
| Judge-Made Law/Common Law |
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Definition
| Law that's based on precedent (past decisions). Judges decide these laws. |
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| Why would the legislature be sued? |
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Definition
| For making an unconstitutional statutory law. This is an exam of how the judicial branch checks and balances the legislative branch. |
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Term
| What are 4 types of laws/reasons we have laws? |
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Definition
1. Safety/Protection (traffic)
2. Prohibitory (kill/steal)
3. Mandatory (taxes)
4. Permissive (drivers license) |
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| What is the standard of proof for a criminal case? What is the punishment for a criminal act? |
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Definition
"Beyond a reasonable doubt".
Prison or fine. |
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Term
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Definition
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| What is the standard of proof for civil court? |
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Definition
| "Preponderance of the evidence" (51%). |
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Term
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Definition
Guilty = criminal law
Liable = civil law |
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Definition
Not Guilty = not guilty by law
Innocent = totally innocent |
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Term
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Definition
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Term
| Sarbanes-Oxley Act (2002) |
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Definition
| Required auditors of public companies to also audit internal controls. Tried to impose ethical responsibilities to these corporations. |
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Definition
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Term
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Definition
| A consensual relationship between a principal and agent. |
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Term
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Definition
| A person who is authorized to act for and on behalf of the principal. |
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Term
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Definition
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Term
| Four elements of a contract and what are they needed for |
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Definition
1. Consideration (optional)
2. Legality
3. Capacity
4. Mutual Assent
- Needed for a valid contract and in order to collect damages for a breach of contract. |
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Term
| Capacity (for a contract) |
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Definition
| Mental capacity to understand the contract. Ex: a child or mentally disabled adult does not have the capacity to enter into a contract. |
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Term
| Legality (for a contract) |
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Definition
| You can't enter into a contract for something illegal. |
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Term
| Mutual Assent (for a contract) |
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Definition
| Both parties agree, there is an offer and an acceptance. |
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Term
| Consideration (for a contract) |
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Definition
| Optional. A give and take so that it's not one sided. A bargain for exchange. |
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Term
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Definition
| Whatever a principal can legally do, an agent can do it for him. |
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Term
| What type of duties are not delegable? |
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Definition
| Duties that require a certain personal skill. |
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Term
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Definition
| A non-contractual agency (no consideration). |
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Term
| 3 ways to create an agency: |
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Definition
1. Gratuitous (no consideration)
2. By contract (has all four elements)
3. Estoppel |
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Term
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Definition
| When a person is held liable even when there is no actual agency, but the law makes it a legal agency because the person is liable as principle. |
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Term
| When does agency liability arise without a contract (estoppel)? 3 answers |
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Definition
1. When a person intentionally or negligently causes a belief that another person has the authority to act on their behalf.
2. When a 3rd person reasonably and in good faith relies on the appearances created by the agent.
3. When the 3rd person changes her position in reliance on the agent's apparent authority. |
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Term
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Definition
| When a contract is required in order for the agency to be enforceable. |
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Term
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Definition
| A formal, written agency agreement that gives someone the power to make decisions for you. Power of Attorney must be in writing and signed. Stronger than spousal power. |
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Term
Fiduciary Duties
(agent to the principal) |
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Definition
1. obedience
2. diligence
3. loyalty
4. duty to inform
5. duty to account |
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Term
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Definition
| A person who is appointed as a position of trust and confidence. An agent is a fiduciary. |
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Term
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Definition
| Agent must obey the principal within the limits of their authority. Can't act outside the realm of their authority. |
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Term
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Definition
| Agent must exercise reasonable care and skill when conducting the principals business. You must act with due care, you can't be negligent. |
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Term
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Definition
| An agent must be loyal to their own principal. |
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Term
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Definition
| Anything told to agent by 3rd party is deemed to be told to principal, and agent must inform him. |
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Term
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Definition
| Agent must provide accounting of the principal's business to the principal. |
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Term
| Other Fiduciary Duties owed from agent to principal |
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Definition
Conflict of Interest
Self-Promotion
Self-Dealing
Competition
Confidentiality |
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Term
| Duties owed from Principal to Agent (not always necessary) |
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Definition
1. Compensation
2. Reimbursement (for authorized expenses and payments made)
3. Indemnification |
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Term
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Definition
| Compensate agent for losses incurred while acting as principal in the transaction (similar to reimbursement but on larger scale). |
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Term
| When can an agent lose the rights that the principal owes him? |
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Definition
| If the agent breaches his fiduciary duties. |
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Term
| Five reasons for Termination of Agency |
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Definition
1. When principal or agent's consent is withdrawn (ex: if the agent quits in middle of job he is no longer agent but can be sued).
2. Certain events by Operation of Law (ex: if principal files for bankruptcy, judge signs law that causes termination of agency).
3. Loss or destruction of subject matter (ex: house destroyed so real-estate agent is no longer agent).
4. If the agent is held to be disloyal.
5. Outbreak of war. |
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Term
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Definition
1. Actual Express Authority
2. Actual Implied Authority
3. Apparent Authority |
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Term
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Definition
| When the principal gives (through oral or written direction) authority to the agent. |
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Term
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Definition
| The implied authority of the agent does not come from the principal's express words, but rather it's inferred by the agent from the words (non-express) or conduct of the principal. (It could come from "custom & usage" of the business/industry). |
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Term
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Definition
| Power conferred on the agent by the acts & conduct of the principal that reasonably lead a 3rd party not only to believe that this agent has actual authority but also justifiably relied on it. Different than Actual Implied Authority because 3rd party infers agent's authority (from the principal's action), instead of agent inferring his authority (from the principal's action). |
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Term
| If an agent makes a proper delegation of authority to another person (sub-agent) who is responsible for him? |
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Definition
| The principal becomes responsible for the sub-agent. |
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Term
| Who is liable when an agent exceeds her authority by acting outside the scope of her agency? |
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Definition
| The agent will be held personally liable on the unauthorized contract. |
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Term
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Definition
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Term
| What type of authority cannot exist with an undisclosed principal? |
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Definition
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Term
| Do you need to notify the 3rd party of termination of agency because of incapacity or death? |
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Definition
| No but you do for other reasons |
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Term
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Definition
| When an agent exceeds her authority to act but the principal said it's ok, so now the principal is liable. |
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Term
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Definition
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Term
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Definition
"Respondent Superior"
A principal will be liable for torts committed by an employee if employees acted within scope of employment (even if tort was only due to negligence of the employee) |
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Term
| Who can the 3rd party sue? Principal, employee, or both? Why? |
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Definition
| Either principal or agent/employee. But not both because the principal and employee are "JOINTLY & SEVERALLY LIABLE" |
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Term
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Definition
| 3rd party can collect half of damages from each (principal and agent) but can't double dip |
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Term
| Is a principal liable for unauthorized criminal acts committed by employee? |
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Definition
| General rule: No, even if committed within scope of employment. |
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Term
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Definition
OLD CAR
Obedience
Loyalty
Diligence
Care/Confidentiality
Authority
Reasonable |
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