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Legal Environment of Business
Chapter's 11, 13, 14 and 22
23
Law
Undergraduate 3
07/30/2008

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Term
Agency
Definition
A relationship between two parties in which one party (the agent) agrees to represent or act for the other (principal)
Term
Fiduciary
Definition
As a noun, a person having a duty created by his or her undertaking to act primarily for another’s benefit in matters connected with the undertaking. As an adjective, a relationship founded on trust and confidence.
Term
Independent Contractor
Definition
One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.
Term
Ratification
Definition
The act of accepting and giving legal force to an obligation that previously was not enforceable
Term
Disclosed Principal
Definition
A principal whose identity is known to a third party at the time the agent makes a contract with the third party
Term
Partially Disclosed Principal
Definition
A principal whose identity is unknown by a third party, but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract
Term
Undisclosed Principal
Definition
A principal whose identity is unknown by a third person, and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.
Term
Respondeat Superior
Definition
Latin for “let the master respond.” A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.
Term
Vicarious Liability
Definition
Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory part (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.
Term
Minimum Wage
Definition
The lowest wage, either by government regulation or union contract, that an employer may pay an hourly worker.
Term
Workers’ Compensation Laws
Definition
State statutes establishing an administrative procedure for compensating workers’ injuries that arise out of-or in the course of-their employment, regardless of fault.
Term
Vesting
Definition
The creation of an absolute or unconditional right or power
Term
Protected Class
Definition
A group of persons protected by specific laws because of the group’s defining characteristics. Under the laws prohibiting employment discrimination, these characteristics include race, color, religion, national origin, gender, age and disability.
Term
Employment Discrimination
Definition
Treating employees or job applicants unequally on the basis of race, color, national origin, religion, gender, age, or disability; prohibited by federal statutes.
Term
Disparate-Treatment Discrimination
Definition
A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.
Term
Prima Facie Case
Definition
A case in which the plaintiff has produced sufficient evidence of his or her conclusion that the case can go to a jury; a case in which the evidence compels the plaintiff’s conclusion if the defendant produces no affirmative defense or evident to disprove it
Term
Disparate-Impact Discrimination
Definition
A form of employment discrimination that results from a certain employer practices or procedures that, although not discriminatory, on their face, have a discriminatory effect
Term
Constructive Discharge
Definition
A termination of employment brought about by making the employee’s working conditions so intolerable that the employee reasonably feels compelled to leave.
Term
Sexual Harassment
Definition
In the employment context, the demanding of sexual favors in return for job promotions or other benefits, or language or conduct that is so sexually offensive that it creates a hostile working environment.
Term
Business Necessity
Definition
A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.
Term
Bona Fide Occupational Qualification (BFOQ)
Definition
Identifiable characteristics reasonably necessary to the normal operation of a particular business. These characteristics can include gender, national origin, and religion, but not race.
Term
Seniority System:
Definition
In regard to employment relationships, a system in which those who have worked longest for the company are first in line for promotions, salary increases, and other benefits; they are also the last to be laid off if the workforce must be reduced
Term
Affirmative Action
Definition
Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination
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