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65 Cards in this Set
- Front
- Back
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a written authorization to represent someone else
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power of attorney
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T/F?
POA is signed by only the principal, not the agent |
True
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a person who works for an employer for a salary or for wages
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employee
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One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. May be an agent
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independent contractor
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T/F?
You are an employee if the employer (the principal) supervises and controls the manner in which the work is done |
True
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T/F?
Principal is liable for employees and independent contractors |
False; Only employees
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authority expressly given by the P to A
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express authority
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Effect on Principal and the Third Party on Express Authority?
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P and 3rd P are bound in K
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authority implied by (1) custom, (2) from the position in which the P has placed the agent, or (3) because such authority is necessary to carry out expressly authorized duties and responsibilities
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implied authority
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Effect on Principal and the Third Party on Implied Authority?
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P and 3rd P are bound in K
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authority created when the conduct of the P leads a 3rd Party to believe that the principal's agent has authority
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apparent authority
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Effect on Principal and the Third Party on Apparent Authority?
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P and 3rd P are bound in K
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Liability of B.K. Don't order food example?
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P is liable
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Liability of B.K. Ordering paint example?
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P is liable
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4 Variables that Determine the Scope of Agent's Apparent Authority?
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1. Status of Agent's position
2. Custom and Usage of the business 3. Previous acquiescence by the P is similar contracts made by A 4. Not by "secret limitations" not known to third party |
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T/F?
If agent acts with "implied authority" only principal is liable |
True
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the act of accepting and giving legal force to an obligation that previously was not enforceable
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ratification
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Agent is instructed to do business on behalf of P and, also, not to reveal principal's existence
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undisclosed Principal
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P is always liable when A does exactly what A was told to do (and Agent is always liable when A does not reveal P's name)
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undisclosed Principal
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P is NOT liable when A does NOT follow instructions, however, A is liable
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undisclosed Principal
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If A does what A is suppose to do, both liable
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undisclosed principal
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If A does not do what A is suppose to do, only A is liable
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undisclosed principal
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T/F?
There is no apparent authority with an undisclosed P |
True
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Agent is always liable for any tort that the Agent commits
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tort liability
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Principal is generally liable for "unintentional torts (negligence) of the agent when the agent is acting within the "scope of the employment" (the agent is on the job)
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tort liability
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Principal is not liable for intentional torts of Agent unless (1) P encouraged it, or (2) P was negligent in hiring. Also, P is NOT liable when A acts outside the scope of employment by "leaving the job"
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tort liability
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The tort must be committed within the "scope of employment," otherwise, principal has no liability for agent's actions
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tort liability
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The doctrine of "respondent superior" applies to principals and/or agents
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tort liability
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Liability of "Ferret" example?
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Both A and P are liable
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Liability of "I am making a delivery and I run into someone"?
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Both P and A are liable
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Liability of "Fedex driver" example where he beats his x-wife?
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P is NOT liable
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T/F?
Generally, P is not liable for acts of independent contractors but will be liable for acts of employees |
True
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Importance of "punch bowl" example?
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duty to account
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Agent has a duty to act in the best interest of the P
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fiduciary duty
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Importance the G.R. policeman expenses example?
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fiduciary duty
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T/F?
Agent must account for all "incentive" (kickback) payments |
True
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Importance of being a "secured creditor"?
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Get security in tangible personal property of the debtor. This way, when the debtor defaults, you have some collateral to grab
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What did the banks do wrong when the banks loaned money to Vorce?
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They did not check out collateral
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8 Debts that are Non-dischargeable?
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1. Alimony and child support
2. Taxes or fines owed the government 3. Debts incurred through fraud 4. Debts incurred through intentional torts 5. Educational Loans - unless undue hardship 6. "Unscheduled debts" 7. Cash advances (over $825) within 70 days and purchases of luxury goods over $550 within 90 days 8. MADD (debts incurred if you have been convicted of being legally drunk - a car accident) |
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7 "priorities" in bankruptcy?
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1. Secured claims to extend of security
2. Alimony and child support 3. Administrative fees 4. Wage claims up to $4,925 earned within 180 days of filing 5. $2,225 for deposits 6. Taxes owed the government 7. Claims due to conviction of drunk driving, drugs, or other substances |
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Importance of being a "secured creditor" when debtor goes bankrupt?
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You get paid first to extent of your collateral
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How much do general creditors receive for balance?
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Receive five or ten cents on the dollar
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What assets are included in the bankruptcy estate?
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All non-exempt assets plus the right to receive an inheritance, life insurance proceeds, or property settlement within 180 days of filing the petition
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Returned to trustee and distributed to all unsecured creditors
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preferential payments
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where an insolvent debtor favors one creditor over another within 90 days of filing of the petition, it is one year, if transfer was made to an "insider" (a personal relative or a business "relative")
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preferential lien
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does not apply to payments of less than $5,450
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preferential payments
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allows the "preferred party" to receive more (percentage wise) than other creditors
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preferential payments
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payments are for antecedent debts (prior debts)
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preferential payments
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3 Instances when you are not allowed to go bankrupt?
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1. Failure to "preserve books and records"
2. Attempt to hide assets from creditors 3. Substantial abuse |
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T/F?
Under the new law, debtors who earn more than the medium income in their state and who can pay at least $6,000 of their debt over a 3-5 year period are now required to use Chapter 13 |
True
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Liquidation proceedings
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Chapter 7
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Business Reorganization
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Chapter 11
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Individual Reorganization
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Chapter 13
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T/F?
A thief acquires "void" title and rightful owner always gets goods back |
True
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T/F?
If goods are "voluntarily given to "bad person" (due to fraud, etc.), "bad person" has "voidable" title and can pass good title to a good faith purchaser. Thus, owner could NOT get goods back from good faith purchaser |
True
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Beier from New York ordered goods from Seller, Inc., a Los Angeles firm. Seller delivered the goods to Carrier and sent invoices to Beier marked FOB Los Angeles. When Carrier got to Indianapolis there was a storm and lightning struck the Carrier's truck and all goods were destroyed. When the Beier did not receive delivery of the goods, Beier did not want to pay for the goods. Assuming the goods are destroyed, between the Beier and the Seller, who has "risk of loss" for the damaged goods?
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Beier, because the shipment was FOB Los Angeles
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With a "merchant seller" risk of loss passes to buyer upon what event?
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Buyer takes receipt of the goods
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With a "Non-merchant seller" ROL passes to buyer upon what event?
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Seller must "tender" the goods to buyer
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A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold
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sale on approval
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A type of conditional sale in which title and possession pass from the seller to the buyer, however, the buyer retains the option to return the goods during a specified period even though the goods conform to the contract
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sale or return
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a seller's or lessor's oral or written promise, ancillary to an underlying sales or lease agreement, as to the quantity, description, or performance of the goods being sold or leased
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express warranty
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Any sale by a "merchant" who sells goods of a certain kind
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implied warranty
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Is the object “Natural” to the food?
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foreign-natural test
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Should the consumer reasonably expected or anticipated the object in the food?
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reasonable expectation test
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The buyer must have relied on the seller's skill of judgement in selecting the goods
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implied warranty of fitness
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