Principal
In an agency relationship, the principal is the person for whom the agent is acting (CEO or Company)
Principal Duty
- Duty to compensate as provided by the agreement
- Duty to reimburse
- Duty to cooperate
Agent
A person who acts for the principal (Employee)
Agent Duty
- Duty of loyalty
- Duty to obey instructions
- Duty of care
- Duty to provide info
Implied Authority
When a principal directs an agent to undertake a transaction, the agent has the right to do acts that are incidental to it, usually accompany it, or are reasonably necessary to accomplish it.
Expressed Authority
Words or conduct of a principal that, reasonably interpreted, cause the agent to believe that the principal desires him to do a specific act.
FMLA
In 1993, Congress passed the Family and Medical Leave Act (FMLA), which guarantees both men and women up to 12 weeks of unpaid leave each year for childbirth, adoption, or medical emergencies for themselves or a family member.
OSHA
- To ensure safe working conditions.
- Sets specific health and safety standards.
- Obliges employers to keep workplace "free from recognized hazards."
- Requires records of all injuries and accidents.
- Allows inspection of workplaces and fines for unsaf
Bona Fide Occupation Qualification
Job requirements that are essential to the position (Defense for a charge of discrimination)
Affirmative Action
-Affirmative Action is neither required nor prohibited by Title VII.
- Admission policies that provide equal access to education for those groups that have been historically excluded or underrepresented, such as women and minorities.
- 3 sources of affirm
Equal Pay Act
Under the Equal Pay Act of 1963, an employee may not be paid a lesser rate (for equal work) than opposite sex employees.
National Labor Relations Act
Section 7 guarantees employees the right to organize and join unions, bargain collectively through representatives of their own choosing, and engage in other concerted activities.
Norris LaGuardia Act
Prohibits federal court injunctions in peaceful labor disputes
Prohibits workers to form unions and use collective bargaining power
Partnership-Death
If not in a formal partnership agreement, then death will legally dissolve partnership
Corporation-Death
Her estate would become the owner of her shares, or spouse/beneficiary
LLC-Death
If it is in the agreement, business can continue and new members can be selected.
Partnership-Tax
Not a taxable entity
Corporation-Tax
Pay taxes and file returns. Pay income tax on all profits. Shareholders must then pay tax on dividends from corporation. Once before it ends up in partner's bank but twice before it is deposited by shareholder.
Sole Proprietor-Tax
Taxes on all business profits
Joint Venture
Is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.
Securities
A security is any transaction in which the buyer:
(1) invests money in a common enterprise and,
(2) expects to earn a profit predominately from the efforts of others.
1933 Act
- Under �11 of the 1933 Act, auditors are liable for any material misstatement or omission in the financial statements that they prepare for a registration statement.
- Auditors can avoid liability if they show that they made a reasonable investigation (d
1934 Act
-Fraud:
- Under �10(b), an auditor is liable for making (1) a misstatement or omission of a material fact, (2) knowingly or recklessly (3) that the plaintiff relies on in purchasing or selling security.
- Whistleblowing:
- Auditors who suspect that a clie
Corporation Termination
- Terminating a corporation is a three-step process:
- Vote by a majority of the shareholders.
- Filing Articles of Dissolution with the Secretary of State.
- Winding up - paying debts and distributing assets
Sarbanes Oxley Act of 2002
- Public Company Accounting Oversight Board - ensures investors receive accurate and complete financial information.
- Reports to Audit Committee - Auditors must communicate regularly with audit committees of its clients.
- Consulting Services - prohibits
Magnus Moss
- Manufacturers or sellers are not required to offer a warranty.
- Any supplier that does offer a written warranty (on a consumer product that costs more than $15) must disclose the terms of the warranty in simple understandable language before the sale.
Federal Trade Commission (FTC)
- Created in 1915 to regulate business.
- Section 5 of the Federal Trade Commission Act (FTC Act) prohibits "unfair and deceptive acts or practices."
- Under the FTC Act, an advertisement is deceptive if it contains an important misrepresentation or omiss
Clean Air Act of 1970
Requires the Environmental Protection Agency to establish national air quality standards, which must protect public health without regard to cost.
Environmental Protection Agency (EPA)
- Created in 1970 by Congress to unify and consolidate environmental law.
- Agency of the Federal Government
- When Congress passes a new law, the EPA issues regulations to implement it.
- The EPA can bring an action against violators.
- Some infractions
Electronic Communication Privacy Act
-Prohibits the unauthorized interception or disclosure of wire and electronic communication.
- The intended recipient of an e-mail may disclose it to anyone she desires.
- ISPs are generally prohibited from disclosing electronic messages to anyone other t
Intellectual Property
- Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.
- IP is protected in law by, for example, patents, copyright and trademarks, which enab
Requirements for Patent
- Priority Between Two Inventors - generally, the person first to invent and use the product is given the patent, even over an earlier filer.
- Prior Sale - must apply for a patent within one year of selling the product.
- Provisional Patent Application a
Advantages for Registering a Trademark
- It grants the right to use the registered trademark symbol: �
- It grants the right to file a trademark infringement lawsuit in federal court and to obtain monetary remedies, including infringer's profits, damages, costs, and, in some cases, treble dama
Trademark Renewal
10 years but can be renewed an unlimited amount of times
Copyright Renewal
70 years after death of author. 95 years from publication. Or 120 years from creation. Whichever time period is shorter.
Patent Renewal
Last 20 years. Cannot be renewed, once its expired it becomes public domain
Trade Secret Renewal
Can last forever as long as it is kept confidential
Gift Delivery
- The donor must intend to transfer ownership immediately.
- Promises to transfer property in the future are unenforceable without consideration, but with consideration they are not gifts.
- A revocable gift is a contradiction in terms because the giver o
Gift: Physical Delivery
Method used to deliver gift personally
Gift: Constructive Delivery
Made by transferring ownership without physical delivery
Contract v. Gift
No bargain for exchange
Mislaid Property
Something that the owner has intentionally placed somewhere and then forgotten. A book deliberately placed on a bus seat by an owner who forgets to take it with her is mislaid property. Generally, the finder gets no rights in property that has simply been
Abandoned Property
Something that the owner has knowingly discarded because she no longer wants it. A vase thrown into a garbage can is abandoned. Generally, a finder is permitted to keep abandoned property, provided he can prove the owner intended to relinquish all rights.
Bailor and Bailee
The bailee is strictly liable to redeliver the goods on time to the bailor or to whomever the bailor designates. The bailee must exercise due care.
- Ex: Airport and luggage
- Ex: Loan a friend golf clubs
Real Property
Land, house, fixtures
Personal Property
Property that is not included in real property
- Shoes, laptop, stuff
Principal
In an agency relationship, the principal is the person for whom the agent is acting (CEO or Company)
Principal Duty
- Duty to compensate as provided by the agreement
- Duty to reimburse
- Duty to cooperate
Agent
A person who acts for the principal (Employee)
Agent Duty
- Duty of loyalty
- Duty to obey instructions
- Duty of care
- Duty to provide info
Implied Authority
When a principal directs an agent to undertake a transaction, the agent has the right to do acts that are incidental to it, usually accompany it, or are reasonably necessary to accomplish it.
Expressed Authority
Words or conduct of a principal that, reasonably interpreted, cause the agent to believe that the principal desires him to do a specific act.
FMLA
In 1993, Congress passed the Family and Medical Leave Act (FMLA), which guarantees both men and women up to 12 weeks of unpaid leave each year for childbirth, adoption, or medical emergencies for themselves or a family member.
OSHA
- To ensure safe working conditions.
- Sets specific health and safety standards.
- Obliges employers to keep workplace "free from recognized hazards."
- Requires records of all injuries and accidents.
- Allows inspection of workplaces and fines for unsaf
Bona Fide Occupation Qualification
Job requirements that are essential to the position (Defense for a charge of discrimination)
Affirmative Action
-Affirmative Action is neither required nor prohibited by Title VII.
- Admission policies that provide equal access to education for those groups that have been historically excluded or underrepresented, such as women and minorities.
- 3 sources of affirm
Equal Pay Act
Under the Equal Pay Act of 1963, an employee may not be paid a lesser rate (for equal work) than opposite sex employees.
National Labor Relations Act
Section 7 guarantees employees the right to organize and join unions, bargain collectively through representatives of their own choosing, and engage in other concerted activities.
Norris LaGuardia Act
Prohibits federal court injunctions in peaceful labor disputes
Prohibits workers to form unions and use collective bargaining power
Partnership-Death
If not in a formal partnership agreement, then death will legally dissolve partnership
Corporation-Death
Her estate would become the owner of her shares, or spouse/beneficiary
LLC-Death
If it is in the agreement, business can continue and new members can be selected.
Partnership-Tax
Not a taxable entity
Corporation-Tax
Pay taxes and file returns. Pay income tax on all profits. Shareholders must then pay tax on dividends from corporation. Once before it ends up in partner's bank but twice before it is deposited by shareholder.
Sole Proprietor-Tax
Taxes on all business profits
Joint Venture
Is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.
Securities
A security is any transaction in which the buyer:
(1) invests money in a common enterprise and,
(2) expects to earn a profit predominately from the efforts of others.
1933 Act
- Under �11 of the 1933 Act, auditors are liable for any material misstatement or omission in the financial statements that they prepare for a registration statement.
- Auditors can avoid liability if they show that they made a reasonable investigation (d
1934 Act
-Fraud:
- Under �10(b), an auditor is liable for making (1) a misstatement or omission of a material fact, (2) knowingly or recklessly (3) that the plaintiff relies on in purchasing or selling security.
- Whistleblowing:
- Auditors who suspect that a clie
Corporation Termination
- Terminating a corporation is a three-step process:
- Vote by a majority of the shareholders.
- Filing Articles of Dissolution with the Secretary of State.
- Winding up - paying debts and distributing assets
Sarbanes Oxley Act of 2002
- Public Company Accounting Oversight Board - ensures investors receive accurate and complete financial information.
- Reports to Audit Committee - Auditors must communicate regularly with audit committees of its clients.
- Consulting Services - prohibits
Magnus Moss
- Manufacturers or sellers are not required to offer a warranty.
- Any supplier that does offer a written warranty (on a consumer product that costs more than $15) must disclose the terms of the warranty in simple understandable language before the sale.
Federal Trade Commission (FTC)
- Created in 1915 to regulate business.
- Section 5 of the Federal Trade Commission Act (FTC Act) prohibits "unfair and deceptive acts or practices."
- Under the FTC Act, an advertisement is deceptive if it contains an important misrepresentation or omiss
Clean Air Act of 1970
Requires the Environmental Protection Agency to establish national air quality standards, which must protect public health without regard to cost.
Environmental Protection Agency (EPA)
- Created in 1970 by Congress to unify and consolidate environmental law.
- Agency of the Federal Government
- When Congress passes a new law, the EPA issues regulations to implement it.
- The EPA can bring an action against violators.
- Some infractions
Electronic Communication Privacy Act
-Prohibits the unauthorized interception or disclosure of wire and electronic communication.
- The intended recipient of an e-mail may disclose it to anyone she desires.
- ISPs are generally prohibited from disclosing electronic messages to anyone other t
Intellectual Property
- Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce.
- IP is protected in law by, for example, patents, copyright and trademarks, which enab
Requirements for Patent
- Priority Between Two Inventors - generally, the person first to invent and use the product is given the patent, even over an earlier filer.
- Prior Sale - must apply for a patent within one year of selling the product.
- Provisional Patent Application a
Advantages for Registering a Trademark
- It grants the right to use the registered trademark symbol: �
- It grants the right to file a trademark infringement lawsuit in federal court and to obtain monetary remedies, including infringer's profits, damages, costs, and, in some cases, treble dama
Trademark Renewal
10 years but can be renewed an unlimited amount of times
Copyright Renewal
70 years after death of author. 95 years from publication. Or 120 years from creation. Whichever time period is shorter.
Patent Renewal
Last 20 years. Cannot be renewed, once its expired it becomes public domain
Trade Secret Renewal
Can last forever as long as it is kept confidential
Gift Delivery
- The donor must intend to transfer ownership immediately.
- Promises to transfer property in the future are unenforceable without consideration, but with consideration they are not gifts.
- A revocable gift is a contradiction in terms because the giver o
Gift: Physical Delivery
Method used to deliver gift personally
Gift: Constructive Delivery
Made by transferring ownership without physical delivery
Contract v. Gift
No bargain for exchange
Mislaid Property
Something that the owner has intentionally placed somewhere and then forgotten. A book deliberately placed on a bus seat by an owner who forgets to take it with her is mislaid property. Generally, the finder gets no rights in property that has simply been
Abandoned Property
Something that the owner has knowingly discarded because she no longer wants it. A vase thrown into a garbage can is abandoned. Generally, a finder is permitted to keep abandoned property, provided he can prove the owner intended to relinquish all rights.
Bailor and Bailee
The bailee is strictly liable to redeliver the goods on time to the bailor or to whomever the bailor designates. The bailee must exercise due care.
- Ex: Airport and luggage
- Ex: Loan a friend golf clubs
Real Property
Land, house, fixtures
Personal Property
Property that is not included in real property
- Shoes, laptop, stuff