BADM 300 Exam 2 QUESTIONS &
ANSWERS(GRADED A+)
What is agency? - ANSWERYou give someone else authority to act upon your behalf
2 parties of agency and their roles - ANSWERPrincipal - person in charge
Agent - Takes on responsibility from principal
Express Agency - ANSWERMost common - famous athlete hires an agent. Power of
attorney.
Implied Agency - ANSWERWhen principal and agent haven't specifically stated their
relationship, but their actions implied.
Ratification Agency - ANSWERReally want to work for a company, but not an
employee. Go out and build up some business for this company and go to company.
You weren't their agent - they have no obligation to follow through on those business
ideals. But if they like it and accept - they are bound.
Parent Agency - ANSWER3rd party reasonably believe that someone is your agent.
Duties an agent owes to a principal - ANSWERObedience - obey what principal asks
them to do
Notify - if agent knows something then principal has the right to know that too
Account - Agent has to be able to give principle a complete account of how they are
using their resources
Loyalty - can't enrich yourself at the expense of the other (usurp, self-dealing)
Agents rights - ANSWER*Flexible - depends on agreement*
Accounting
Other tort and contractual rights
Principal duties - ANSWERCompensate - principal has duty to pay for agent services
Reimburse
Idemnify - principal paying for something the agent had to pay for (being sued)
Cooperate
Principal rights - ANSWERIdemnification
Avoidance - Principal has the right to nullify other rights in the event of breach of duty
Contructive trust - If agent breaches a duty and gains profit for themselves, the principal
has the right to those profits
2 types of liability - ANSWERTort - a wrongful action that causes injury or damage
Contract - agreement between 2 parties
,Are agents liable for principal's torts? - ANSWERNo
Are principals liable for agent's torts? - ANSWERYes - within scope of relationship
Respondeat Superior (Vicarious liability)
Special Tort Rules - ANSWERFrolic & Detour
Dual-purpose missions
Coming and going rule - not liable coming and going to work
Intentional tort
When is the agent liable in contract liability - ANSWERAgent is liable when principal is
not disclosed in business transactions
When is the principal liable in contract liability - ANSWERIf agency relationship exists or
principal made 3 party reasonable believe it exists
Requirement for terminating an agency relationship on the principals behalf -
ANSWERGive notice (people know that this person has been your agent)
What is a wrongful termination? - ANSWERBreach of contract, in an acceptable manner
and acceptable time
Methods of Termination - ANSWERAction of the parties (completion of contract, after
certain time)
Unusual change in circumstance
Operation of Law (die/bankruptcy/country of residence declares war on eachother)
Is a principal liable for an independent contractor? - ANSWERNo
Trixie is employed by ATX Meats. Her contract with the company calls for her to decide
which suppliers to use to meat for ATX to cook. A certain supplier offers Trixie a bribe in
exchange for buying meat from it, even though its products are not as good of a value
as its competitors. ATX finds out and immediately fires her. In this scenario, Trixie has
breached her ________________, and ATX has exercised its ________________. -
ANSWERDuty of loyalty; right of avoidance
Taking a bribe is a violation of the duty of loyalty because the agent is being enriched at
the expense of the principal. When an agent breaches her duties, the principal's right to
terminate its contract with the agent is called the right of avoidance
Scope of authority for determining if the principal is liable - ANSWER- During work
hours
- At principal location
- Specifically intending to advance the principals purposes
- Foreseeable
, Principal specifically instructed or authorized
ATX Meats hires Peter as an employee to be the company's new public relations
director. Peter is very stressed out by his job representing ATX and decides to blow off
some steam one night by having a few drinks at a local pub. He makes the terrible
decision to drive home after drinking and gets into an accident with another motorist
(thankfully no one was hurt!). The police report noted that Peter was transporting some
work files in his car at the time of the accident. Can the motorist that Peter hit recover
her tort damages from ATX? - ANSWERNo, because nothing about Peter's actions
indicates that he was acting within the scope of his agency authority.
Just carrying the ATX files does not indicate that Peter was acting to further his
principal's interests. His actions were undertaken after normal working hours at a
location that isn't his regular work site, and was not specifically authorized by ATX, nor
could his actions have been reasonably foreseen by an employer hiring a public
relations director employee.
Is worker's comp at a federal or state level? - ANSWERState
What kind of remedy is worker's comp for injured workers? - ANSWERThe exclusive
remedy
When can worker's comp go to court? - ANSWERAfter worker's comp's decision, you
can appeal the decision and go to court.
Also, if your case has criminal or tort-related claims within.
What did OSHA do? - ANSWERSet both general (adequate ventilation, right amount of
exits) and specific standards (protective gear for mining) for workplace safety.
FLSA Child Labor
<14
14-15
16-17 - ANSWER<14 = no employment
14-15 = part-time non-manufacturing, non-hazardous
16-17 = full-time non-manufacturing, non-hazardous
Exemptions from FLSA Child Labor Rules - ANSWERFamily business
Agriculture
Entertainment
Delivering newspapers
Wreath making
What is the federal minimum wage set by FLSA - ANSWER$7.25/hour
$2.13 for tipped employees
Exemptions for minimum wage & Overtime rules - ANSWERSalaried employees:
ANSWERS(GRADED A+)
What is agency? - ANSWERYou give someone else authority to act upon your behalf
2 parties of agency and their roles - ANSWERPrincipal - person in charge
Agent - Takes on responsibility from principal
Express Agency - ANSWERMost common - famous athlete hires an agent. Power of
attorney.
Implied Agency - ANSWERWhen principal and agent haven't specifically stated their
relationship, but their actions implied.
Ratification Agency - ANSWERReally want to work for a company, but not an
employee. Go out and build up some business for this company and go to company.
You weren't their agent - they have no obligation to follow through on those business
ideals. But if they like it and accept - they are bound.
Parent Agency - ANSWER3rd party reasonably believe that someone is your agent.
Duties an agent owes to a principal - ANSWERObedience - obey what principal asks
them to do
Notify - if agent knows something then principal has the right to know that too
Account - Agent has to be able to give principle a complete account of how they are
using their resources
Loyalty - can't enrich yourself at the expense of the other (usurp, self-dealing)
Agents rights - ANSWER*Flexible - depends on agreement*
Accounting
Other tort and contractual rights
Principal duties - ANSWERCompensate - principal has duty to pay for agent services
Reimburse
Idemnify - principal paying for something the agent had to pay for (being sued)
Cooperate
Principal rights - ANSWERIdemnification
Avoidance - Principal has the right to nullify other rights in the event of breach of duty
Contructive trust - If agent breaches a duty and gains profit for themselves, the principal
has the right to those profits
2 types of liability - ANSWERTort - a wrongful action that causes injury or damage
Contract - agreement between 2 parties
,Are agents liable for principal's torts? - ANSWERNo
Are principals liable for agent's torts? - ANSWERYes - within scope of relationship
Respondeat Superior (Vicarious liability)
Special Tort Rules - ANSWERFrolic & Detour
Dual-purpose missions
Coming and going rule - not liable coming and going to work
Intentional tort
When is the agent liable in contract liability - ANSWERAgent is liable when principal is
not disclosed in business transactions
When is the principal liable in contract liability - ANSWERIf agency relationship exists or
principal made 3 party reasonable believe it exists
Requirement for terminating an agency relationship on the principals behalf -
ANSWERGive notice (people know that this person has been your agent)
What is a wrongful termination? - ANSWERBreach of contract, in an acceptable manner
and acceptable time
Methods of Termination - ANSWERAction of the parties (completion of contract, after
certain time)
Unusual change in circumstance
Operation of Law (die/bankruptcy/country of residence declares war on eachother)
Is a principal liable for an independent contractor? - ANSWERNo
Trixie is employed by ATX Meats. Her contract with the company calls for her to decide
which suppliers to use to meat for ATX to cook. A certain supplier offers Trixie a bribe in
exchange for buying meat from it, even though its products are not as good of a value
as its competitors. ATX finds out and immediately fires her. In this scenario, Trixie has
breached her ________________, and ATX has exercised its ________________. -
ANSWERDuty of loyalty; right of avoidance
Taking a bribe is a violation of the duty of loyalty because the agent is being enriched at
the expense of the principal. When an agent breaches her duties, the principal's right to
terminate its contract with the agent is called the right of avoidance
Scope of authority for determining if the principal is liable - ANSWER- During work
hours
- At principal location
- Specifically intending to advance the principals purposes
- Foreseeable
, Principal specifically instructed or authorized
ATX Meats hires Peter as an employee to be the company's new public relations
director. Peter is very stressed out by his job representing ATX and decides to blow off
some steam one night by having a few drinks at a local pub. He makes the terrible
decision to drive home after drinking and gets into an accident with another motorist
(thankfully no one was hurt!). The police report noted that Peter was transporting some
work files in his car at the time of the accident. Can the motorist that Peter hit recover
her tort damages from ATX? - ANSWERNo, because nothing about Peter's actions
indicates that he was acting within the scope of his agency authority.
Just carrying the ATX files does not indicate that Peter was acting to further his
principal's interests. His actions were undertaken after normal working hours at a
location that isn't his regular work site, and was not specifically authorized by ATX, nor
could his actions have been reasonably foreseen by an employer hiring a public
relations director employee.
Is worker's comp at a federal or state level? - ANSWERState
What kind of remedy is worker's comp for injured workers? - ANSWERThe exclusive
remedy
When can worker's comp go to court? - ANSWERAfter worker's comp's decision, you
can appeal the decision and go to court.
Also, if your case has criminal or tort-related claims within.
What did OSHA do? - ANSWERSet both general (adequate ventilation, right amount of
exits) and specific standards (protective gear for mining) for workplace safety.
FLSA Child Labor
<14
14-15
16-17 - ANSWER<14 = no employment
14-15 = part-time non-manufacturing, non-hazardous
16-17 = full-time non-manufacturing, non-hazardous
Exemptions from FLSA Child Labor Rules - ANSWERFamily business
Agriculture
Entertainment
Delivering newspapers
Wreath making
What is the federal minimum wage set by FLSA - ANSWER$7.25/hour
$2.13 for tipped employees
Exemptions for minimum wage & Overtime rules - ANSWERSalaried employees:
