Unit CObjective 07.01

Agency Law

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.

Unit COBJECTIVE 07.01

EMPLOYMENT LAW

Collective BargainingContract negotiated by the

employer and representative of the labor union.

UnionsTo 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 prohibitedLength of workExtent 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 CObjective 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 ActsCivil 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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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Pollution PreventionOil 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

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Energy LawsEnergy 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

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North Carolina Regulations and Laws

North Carolina follows all guidelines set by

the Federal Government

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North Carolina Regulations and Laws

North Carolina Inactive Hazardous Sites Response Act

Protects NC from uncontrollable and unregulated harmful wastes

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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

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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