Presentation on theme: "Unit C Objective 07.01 Agency Law. AGENCY Relationship in which one person, called an agent, represents another person, called a principal, in some."— Presentation transcript:
AGENCY Relationship in which one person, called an agent, represents another person, called a principal, in some sort of business transaction with a third party. In most cases a binding contractual agreement is formed. Principal -> Agent -> Third Party –Example: You picked up and paid for a pizza ordered by a family member.
TYPES OF AGENTS General Agent-given authority to perform any act within the scope of a business. Special Agent-employed to accomplish a specific purpose or to do a particular job. Subagents-appointed by another agent. Agent’s Agent-has no power to appoint a subagent but does so anyway. Coagents-two ore more agents hired by the principal.
RELATIONSHIPS ARE CREATED By agreement (contract) By law (circumstantial or specific) By statute (special interest of a state)
AGENCY RELATIONSHIPS Gratuitous Agent: agent works for free (no contract) Master: has the right to control the conduct of his or her servant Independent Contractor: agent is hired by the other party, but not controlled
AGENCY RELATIONSHIPS, Continued Partially Disclosed Agent: principal’s existence but not identity is known to the third party. Fiduciary: relationship is based on trust. Actual Authority: real power the principal gives to an agent to act on his or her behalf
AGENCY RELATIONSHIPS, Continued Apparent Authority: agency by estoppel Third Party: must be notified if an agency has been terminated Consensual: both parties of a principal/agent relationship agree or consent to relationship
AGENCY RELATIONSHIPS, Continued Agent is obligated to act in good faith (within the scope of the principal’s needs and wants). Therefore, a principal is not liable for criminal acts. When an agency is created by statute (law), the agent is known as a statutory agent.
AGENCY RELATIONSHIPS, Continued If unauthorized agent works on your behalf, you have two options: 1.Charge agent with fraud (agent is liable to the third party) 2.Accept actions of agent (ratify)
TYPES OF AUTHORITY Actual-real power given to agent Express-all orders, commands, or directions given to agent when relationship created Implied-understood acts or powers implied from express terms
AGENT’S DUTIES TO PRINCIPAL Obedience-obey reasonable orders Good faith-deal honestly Loyalty-faithfulness or acting in best interest Duty to account-accountable for all money entrusted to him/her
PRINCIPAL’S DUTIES TO AGENT Compensation-payment for services Reimbursement-repayment for own money spent Indemnification-repayment for amount lost Cooperation-working together
TERMINATION OF RELATIONSHIP By operation of law –Death of principal or agent –Bankruptcy –Impossibility of performance –Agent’s objective becomes illegal
TERMINATION OF RELATIONSHIP continued Termination of acts –Performance –Mutual agreement –Agent’s withdrawal –Agent’s discharge
TERMINATION OF RELATIONSHIP continued Notice to third parties –Credit has been given to principal. –Cash business has been done. –No notice when third party never heard of agency relationship.
Collective Bargaining Contract negotiated by the employer and representative of the labor union.
Unions To certify, must have a unanimous vote (50 %) If lose certification vote, must wait one year for another vote.
Employment at Will Employment is not for a stated amount of time. Employer, without being liable for breach of contract, could fire the employee and pay him or her for services rendered up to the time of the firing (employee can quit). Unjust Dismissal –Employees have legal grounds against employers who have treated them unfairly.
Grievance Procedure Sets up a series of steps employees must take to appeal an employer’s decision that they feel violates just cause. Due Process is a grievance procedure for government employees.
Restrictive Employment Covenants Agreement not compete –Restrict: Type of work prohibited Length of work Extent of geographic area
Laws Wagner Act (National Labor Relations Act) –First federal law dealing with collective bargaining –Encourage collective bargaining, discouraged unfair labor practices Taft-Hartley –Prevents labor union from requiring an employer to retain employees who are no longer need Fair Labor Standards Act of 1938 –Restricted child labor Landrum-Griffin Act –Unions must register with Sec. of Labor and submit year financial reports.
Unit C Objective 07.01 Employment Relationships, Protection and Equal Opportunity
Relationships between Employer-Employee Labor-Management-unions formed to in best interest of employee. –Collective bargaining agreement-labor agreement between an employer and the union. –Grievance procedure-steps to resolve disputes.
Relationships between Employer-Employee continued Professional contracts are generated by professional or executives who negotiate their own contracts.
Terminating the Relationship Employment-at-will occurs with the termination of the job by the employee or the employer.
Labor Laws Fair Labor Standards Act: Restricted child labor Minimum wage Time and a half overtime Equal Pay Act: equal pay for equal work
Labor Laws Social Security: contributions by employee and employer Work Compensation Laws: provides income if injured on the job (employer bears cost of compensation)
Civil Rights Acts Civil Rights Act of 1964: Prohibits discrimination Complain to the Equal Employment Opportunity Commission (EEOC) Civil Rights Act of 1991: new law that states in disparate impact cases, the employer has the burden of proving the existence of business necessity. (employee eligible for unemployment if discharged not for a “cause”)
Employment Acts Disparate Treatment: most obvious and direct way to discriminate (employer intentionally discriminates)
Employee or Independent Contractor Tests to determine if employee or independent contract: Pay Workers compensation Unemployment
Types of Shops Agency- receive union benefits without belonging to union Closed- must join prior to employment Union- must join with 1 year of employment
Employment Acts Age Discrimination Employment Act: Forbids discrimination against any person age 40 or older in hiring, firing, promoting, or other aspects of employment Older Workers’ Benefit Protection Plan: forbids discrimination against older workers in handling their employee benefit and retirement plans
Employment Acts Americans With Disabilities Act: Forbids discrimination on the basis of a physical or mental disability if disabled individual can perform “essential function” of the job despite the disability.
Statutory Rights of Employees Submit worker’s compensation claim Engage in legal union activities Participate in state or federal military service OSHA whistleblower protection Answer jury duty call or serve as trial witness
More Statutory Laws… Protection from unsafe work conditions Receive minimum wage No job discrimination based on race, color, national origin, sex, religion, age, or handicap
Hazardous Occupations Not Available To Minors: Mining Manufacturing explosives, brick, or tile Operating power-driven hoists Logging and saw milling Driving motor vehicles or acting as an outside helper on such vehicles (except for incidental, occasional, and school bus driving)
MORE… Slaughtering or meat packing Operating circular saws, band saws, or guillotine shears Wrecking or demolishing buildings or ships Roofing excavating
Federal Energy and Environmental Regulation Agencies and Laws Business Law Objective 7.02
40 Federal Energy Regulatory Commission (FERC) Manages the wholesale price of natural gas and electricity sold for interstate commerce use. Answers questions about increase in prices State Utility agencies regulate prices Manages transportation of electricity and natural gas Ensures that regulated energy companies are following guidelines set by the law
41 U.S. Department of Energy Protects National Security Applies advanced science and nuclear technology Protects economic security Promotes supply and delivery of reliable, affordable, and environmentally sound energy
42 Energy Reorganization Act Energy Reorganization Act created the NRC Controls licensing, constructing, and creation of nuclear reactors Manages possession, use, transportation, and disposal of nuclear material Controls all nuclear activities
43 Environmental Protection Agency (EPA) Responsible for environmental protection Implements the Environmental Policy Act Governs the environmental laws for air, water, solid waste, toxic substances, and noise pollution Controls executive orders
44 National Environmental Policy Act (NEPA) Fights Pollution and cleans the environment Explains consequences for environmental violation Prevents or eliminates damage to the environment Requires federal agencies to integrate environmental values by creating Environmental Impact Statements each week that are posted every Friday on the website
45 Environmental Protection Agency (EPA) Manages all federal antipollution programs Handles air, solid waste, toxic substances, and pesticides Sets guidelines for program Monitors programs Establishes grants to help eliminate pollution Researches and sets national standards for programs Issues permits
46 Nuclear Regulatory Commission (NRC) Consists of a five member commission One member is appointed by the President Generates safety policies and regulations for nuclear reactors and materials and allows the Executive Director for Operations (EDO) to handle policies and decisions of the commission Issues licenses Handles legal matters Directs the activities of the program EDO ensures safety of commercial use of nuclear materials in the US Offices handle inspections, enforcement of laws, and emergency response programs licensees
47 Clean Air Act Established to protect public health and the environment Was created by the US Environmental Protection Agency to authorize the National Ambient Air Quality Standards (NAAQS) to assist in the creations of law to protect the environment Handles problems such as acid rain, ground-level ozone, and air toxics
48 Clean Water Act Protects water quality Does not handle ground water Helps to reduce pollution in waterways, wastewater treatment plants, and control runoff pollution Protects the fish, shell fish, and wildlife in water
49 Toxic Substance Control Act Tracks industrial chemicals produced and imported into the US Handled by the EPA Screens, tests, and reports chemicals that pose a threat to the environment EPA can prohibit the manufacture or import of chemicals thought to be hazardous
50 Pollution Prevention Oil Pollution Act (OPA) Works to prevent drastic oil spills Established a trust fund to help clean up spills Oil facilities must submit detailed reports to the Federal government explaining how they will handle unexpected spills Pollution Prevention Act Works to reduce pollution Handles activities such as recycling, source reduction, and sustainable agriculture Helps to protect conservation issues such as energy, water, and natural resources
51 Energy Laws Energy Tax Act (ETA) Handles unstable energy climate Established in 1978 Promotes energy conversion of boilers, coal, solar, and wind technology National Energy Conservation Policy Act Works to helps decrease electricity demand Regulates utilities for residential consumers electricity
Business Law Objective 7.02 State and Local Energy and Environmental Regulation Agencies and Laws
53 North Carolina Regulations and Laws North Carolina follows all guidelines set by the Federal Government
54 North Carolina Regulations and Laws North Carolina Inactive Hazardous Sites Response Act Protects NC from uncontrollable and unregulated harmful wastes
55 NC Department of Environment and Natural Resources (DENR) Prevents and protects North Carolina’s natural resources Protects air, water, and publics health DENR helps business, farmers, and local government, and public keep the area safe North Carolina Regulations and Laws
56 North Carolina Division of Waste Management Controls disposal of solid waste, harmful waste, underground storage tanks, and needed cleanups Works to reduce wastes Consists of a Solid Waste Section, Underground Storage Tank Section, Hazardous Waste Section, Superfund Section (controls waste risks and cleanups North Carolina Regulations and Laws