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40 Cards in this Set

  • Front
  • Back

Actual Authority

Page 531 is the authority that the principal actually grants to the agent and that will establish the limits of what the agent should do in the performance of his or her duties. Actual thority maybe Express the principal to the agent or it may be implied by the principles conduct with the agent

Apparent Authority

Page 530, 534, and 538 the third party reasonably believes that the agent has authority to act in this matter because of the third parties dealing with the principal and the surrounding facts. The third parties believe must be reasonable. Apparent Authority will exist even if the principal did not intend to create the authority. Example of all Fires at him who would work to do sales Agency for 3 years after being fired and then continues to call on his clients and take new orders and collect payments know that the court could also use implied Authority in this situation


Means that the rights in the contract legally can be transferred from one person to another


Example is Commission on a sale 2% of the proceeds that is owed to someone if they can show they have an interest in the contract


Both parties have entered into the contract of their own free will


Promises that the agent will not work for a competing firm contract May provide the agent will not Moonlight for the competition and or the Asian will not compete with the principal after this employment relationship is terminated

Disclosure principle

When agent clearly discloses that he or she is representing a principal and identifies the principle the principle is disclosed

Emergency Authority

Page 530, 533, 537 an agent is responding to an emergency an emergency that occurs or requires a quick response the principal cannot be located in a timely manner the ages conduct was reasonable and was reasonably expected to benefit the principal. An example is prudence hires Andrea to manage her gift shop. The weather service has announced a hurricane is headed towards our community Andrea goes to the hardware store and purchase Lumber and nails to board up the store she has the bill sent 2 prudence

Equal dignities rule

Page 547 equal dignities rule also called the equal dignity rule requires that some agency agreements be in writing this rule as an adjunct to the statute of frauds and states the agent principal contract deserves and requires the same dignity as the third party contract

Estopped or estoppel

Page 530 failure to give notice to third party

Estoppel Authority

Page 535 536 prevents a principal from denying the agent's Authority. This is also called ostensible Authority. It occurs when the principle allows the purported agent to pass himself or herself off as an agent and does not take steps to prevent the purported agent's representation


Page 535 the intentional misrepresentation of a material fact

Implied Authority

Page 532 implied Authority is based on the agents position or I'm past dealings between the agent and the third party. One type of implied Authority arises when an agent is given a title and a position

Implied warranties

Page 540 whenever an agent of a disclosed principal enters into a contract the agent makes all the following implied warranties the agent does not have to stay these warranties they are implied by the situation

Imputing knowledge

Page 536 in addition to being liable for contracts entered into by an agent a principal may be legally responsible for information known to the agent but not actually known by the principal. This subject is called imputing knowledge. Because in Asia has a duty to inform the principle of important facts that relate to the agency it will be assumed that the agent has performed this Duty. His duty is commonly called the duty to give notice that was discussed in chapter 16

Incidental Authority

Agent will also have authority to do things that are necessary to complete his or her assigned tasks. Example would be actual authority to obtain a loan for the business they will have the incident authority to sign the loan document and any other necessary paperwork

Ostensible Authority

Also known as Authority by estoppel which prevents a principal from denying the agent's Authority

Purported agent

One who claims to be an agent

Ratification Authority

Agent Locke Authority at the time of his or her Acts, principal approves the actions after the fact using words or actions, statute of frauds may require writing. An example is when Penny tells and to research potential restaurant franchises that might be available and to report her findings instead and purchases a franchise on Penny's behalf Penny approves the contract in writing

Reasonableness test

California courts do not use the reasonableness test 4 covenants not to compete signed by employees. Generally former employees can engage in any lawful business trade or profession the statue makes exceptions for covenants and other contacts such as when a partner leaves a partnership when a member leaves a limited liability company when a business sells its Goodwill and when owner sell all the shares in a corporation the principal cannot prevent an ordinary employee from engaging and competition once the employment is over


To modify such as a contract to make its restrictions reasonable

Relation back Doctrine

As used in this context states that if the contract is properly ratified it is as if the contract for valid the whole time

Statute of frauds

Is a statute that requires certain contracts to be in writing to be enforceable

Trade Secrets

A principal can prevent an agent from divulging Trade Secrets or customer list after the employment is terminated even without a valid covenant not to compete under common law this disclosure is a violation of the agents duty of loyalty

Undisclosed principal

Is one whose existence in Identity or unknown to the third party

Unidentified principal

One whose existence is known to the third party but whose identity is not

Warranties of authority

Whenever an agent of a disclosed principal enters into a contract the agent makes all the following implied warranties the agent does not have to stay these Ortiz their implied by the situation the disclosed principle exist and is competent the agent is an agent for the principal the agent is authorized to enter into the type of contract for the principal the third party can sue the agent to recover for lost by the breach of warranty of authority

Civil Rights Act of 1991 and the Civil Rights Act of 1964 title 7

Prohibits discrimination in employment based on Color Race religion sex or national origin under title 7 the employer cannot Laughlin make decisions to hire discharge conditions

Closed shop agreements

Prohibit clothes shop agreements obligate the employer to hire and retain only union members part of the taft-hartley Act

Consolidated Omnibus budget reconciliation Act or cobra

Allows employees are qualified beneficiaries to extend their coverage under the employer's group health insurance for a period of time the employee or beneficiary has to pay the entire premium for the coverage employers with 20 or more employees on a typical business day during the last quarter does not apply to churches or government entities

Disparate impact

Any job requirement that prevents a disproportionate number of blacks or other minorities from security employment or promotion has a disparate impact that is an unequal effect on minority's and may be illegal

Equal Pay Act

Answer me prohibits discrimination in wages on the basis of sex

4/5 rule

Under the four-fifths rule if the selection rate for a protected class is less than 4/5 or 80% of the section rate of the group within the highest selection rate this constitutes statistical evidence that there is a disparate impact

Immigration reform and Control Act

Prohibits immigration-related discrimination based on national origin or citizenship status it was the act of 1986

Federal unemployment tax act of 1954

Provides through a coordinated federal and state effort Economic Security for temporarily unemployed workers

Lilly Ledbetter Fair Pay Act of 2009

Specifies that the statute of limitations to file a suit based on pay discrimination begins to run with each discriminatory paycheck a men's title 7 the age discrimination in Employment Act and the Americans with Disabilities Act

National Labor Relations Board

Handles disputes

Occupational safety and health Act of 1970

Mandate safe and healthful workplace conditions

Pregnancy Discrimination

Protect workers from pregnancy-related discrimination based on pregnancy or pregnancy-related symptoms immense title 7

Rehabilitation Act of 1973

Direct Federal contractors to take affirmative action with regard to otherwise qualified handicapped individuals