9/23 - 10/2 Notes Packet
9/23 - 10/2 Notes Packet ACCT 324 002
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ACCT 225 001
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This 10 page Bundle was uploaded by Maddi_Jones on Friday October 2, 2015. The Bundle belongs to ACCT 324 002 at University of South Carolina taught by Julius David Johnson (P) in Fall 2015. Since its upload, it has received 68 views. For similar materials see Survey of Commercial Law in Accounting at University of South Carolina.
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Date Created: 10/02/15
ACCT 324002 Wednesday Sept 23 Notes 0 Intro 0 Agency relationship between a principal boss and an agent hired person 0 Agent person who is authorized to do things for the principal 0 Principal person who hires the agent to do things they need to get done 0 Fiduciary person who has to act rstly for someone else39s bene t 0 Creation of Agency Relationship 0 Quali cations Agency must be hired under lawful intent Agency must be mentally competent Agency cannot be a minor 0 Durable Power of Attorney this appointed person will step in and cover the job when the principal can39t and their rights and power are temporarily transferred to the person 0 Implied Authority Ex I m struggling I need your help to sell my house other person could legally help 0 Agency by Estoppel Ex from book only principal can create this pretends to have authority creates business with client to get the bene t of someone else39s title 0 Agency by Rati cation same as above but the principal can accept or ratify unauthorized act 0 Requirements for quotAgency by Rati cationquot 0 Person must misrepresent themselves as an agent 0 Principal acceptsrati es unauthorized act 0 Principal completely knows all about the contract in question 0 Principal must ratify the whole agent39s act not just parts of it 0 Agency Relationships 0 Fiduciary relationship trust relationship in which agents act on behalf of the principal Ex Work at Crew at the cash register 0 Employeremployee relationship employer hires employee to perform tasks employer has the right to control conduct of employees Ex Work at Crew stocking clothes on shelves 0 EmployerIndependent Contractor Relationship employer hires persons other than employee to conduct some sort of task employer has amp control over details of conduct of independent contractors Ex Workers building dorm aren39t hired by the university but do a job for them University doesn39t have control over them though only their company does 0 Independent Contractor or Employee 0 Do they work in distinct occupationindependently established business Employee no Independent Contractor yes Is the work under employer39s supervision Employee yes Independent Contractor no Does employer supply tools Ex Builders aren39t given tools to build by the university How long are they employed for Employee a long time Independent Contractor it varies from job task to job task How are they paid Employee in regular payments Independent Contractor when the job gets done Principal39s duties to agent compensation reimbursement and indemni cation cooperation and safe working conditions 0 O O 0 Compensation Pay the agent Reimbursement and Indemni cation If your employee travels for you you must cover it if your employee enters into a contract for you and the other party sues you as an employer must cover any damages Cooperation Don t interfere with agent and them getting the job done Safe Working Conditions yeah everybody has to feel and be safe at work it39s a law 0 Agent s duties to principal notes and examples 0 O O O O Loyalty don39t buy the land your boss asks you to go nd for him Employer must turn it down before you can buy it Noti cation give any and all info to employer about task must be con den aL Performance actually do the duties you were asked to do and use the skills you have don39t be lazy Obedience do what you39re asked unless it39s unlawful Accounting make sure all of the principal39s accounts are good and if they asks to see the documentation of their nances it s the agent39s duty to provide them 0 Principal39s rights to remedies against agent 0 Constructive trust employee ends up buying the land you were supposed to bring to your boss don39t tell him about the property and they nd out apply constructive trust Avoidance use right of avoidance to nullify the contract don39t buy farm over 300K you buy one at 400K don39t do that Indemni cation caused by an agent39s negligence employee forgets to tell employer that they entered into a contract in their name and employer is sued by 3rd party because he was late on a deadline Employer can sue employee for his negligence 0 Agents rights and remedies against principal o Tort and contract remedies When a principal violates an agency agreement and they39re the standard tort and contract remedies 0 Demand for an accounting If you feel like you39ve been cheated out of your money especially in commission 0 Speci c performance Doesn39t work for personal services Next Class Friday Sept 25 Notes 0 Authority of Agent and Liability of Principle 0 Express Principal clearly and de nitely tells agent what to do quotDevin has a right to sign this paper for mequot Devin can go sign the paper 0 lmplied Inferred from actions or conduct from relationship Hey man I need you to help me sell my house D you have the authority to put up a sign in the front yard 0 Apparent Authority and Estoppel 3rd party reasonably believes that there s a relationship between the principal and someone else Kurrelmeyer case 99 752 in the book Contractual o Contractual Liability of Principle and Agent for Authorized Agent Acts 0 quotAuthorizedquot Acts Agent acts within scope of agent39s authority 0 Classi cations of Principal knowledge of who the principal is determines this Disclosed agent isn39t liable but principal is 0 Seller KNOWS that agent is working on principal39s behalf Partially Disclosed Agent is possibly liable but the principal de nitely is 3rd party knows there is a principal but doesn39t know who it is 0 Ex Agent says quotI would like to purchase this land on behalf of an anonymous principalquot Undisclosed Both are held liable Principal says quotgo out and act like it s you that39s buying thelandquot o All can sue for indemni cation of law 0 Unauthorized Agent Acts 0 3rd party reasonably believes agent has authority Agent is liable but principal is not 0 3rd party believes agent is mistaken about their authority Nobody is liable To rt 0 Tort Liability and Agency Relationship 0 Fights harmful act outside of breach of contract Principal can39t tell agent to go break this kid39s leg 0 Principal is liable if they direct agent to commit a harmful act or principal fails to provide to provide proper instruments tools or instructions 0 Agent Misrepresentation if an agent misrepresents themselves the 3rCI party can Cancel the contract with the principal and get paid back Af rm the contract and sue the principal to cover any damages 0 Respondeat superior quotlet the superior speakquot Didn39t check his background and he has a history of hurting people 0 Questions for quotCourse and Scopequot of Employment 0 Did the employer authorize the act 0 Did the act happen within the scope of employment Time and space of employment 0 Was act done on behalf of employer Employer asks you to sign a document for him 0 To what extent are the interests advanced 0 Did employer provide the means by which act occurred Employee car was wrecked 0 Did the employer go out on a frolic of his own Don39t stop in Vegas on your direct route out west for employer 0 Principal39s Liability and the Independent Contractor 0 Person who hires independent contractor not liable for independent contractor39s harmful actions under doctrine of quotRespondeat superiorquot unless contractor engages in hazardous activities Blowing things up to build a new football stadium is hazardous activity so if something goes wrong USC is able 0 Crime and Agency Relationship 0 If agent commits crime then the agent is liable o If the agent commits the crime within the scope of employment without authorization principal isn39t liable Pastor had sex with a minor Not church s fault because this isn39t what we employ pastors to do 0 Principal is liable for agent39s crime if principal authorized agent39s criminal act 0 How can you terminate agency relationship 0 Lapse of time you have until this date to sell my house 0 Ful llment of purpose 0 Occurrence of speci c event 0 Mutual agreement no speci c terms and both parties see that it39s a dead end so they split Revocation of authority 0 Renunciation by agent I m not gonna do this anymore sorry breach of contract by agent 0 Termination of Agency Relationship Con39t 0 Death ya can39t have a contract if you39re dead 0 Insanity determined legally insane 0 Bankruptcy you go bankrupt O 0 Change in circumstances sometimes things come up 0 Change in law if you are asked to build a casino in Columbia when the law said it was allowed and half way through the process the governor passes a bill stating that you39re not allowed to build casinos in SC anymore Impossibility to perform house that you39re trying to sell burns down 0 Disloyalty of agent 0 War principal needs contracts from Iraq but if we re in war with them you can39t do business with that country There would be no valid contract 0 Monday Sept 28 Notes 0 Fair Labor Standards Act FLSA This act covers all employers engaged in interstate commerce Requires that everyone that39s employed is paid at least minimum wage Speci ed amount periodically raised by congress Executives professional employees and outside sales persons are excluded 0 Family and Medical Leave Act FMLA o Requires that certain employers provide up to 12 weeks of unpaid leave for speci ed familyrelated occurrences Ex Birth or adoption of a child care for a very sick close relative 0 Who people who have 50 employees 0 Federal Unemployment Tax Act FUTA 0 Provides unemployment compensation to certain people who lose their jobs 0 Each state has their own account for this Federal act 0 Workers39 Comp Laws 0 State laws that provide compensation for employees who have gotten hurt on the job 0 In order to get it you must Be an employee Have been injured on the iob must be an accident 0 If employer intentionally harms employee for this it won t be granted Both employer and employee are covered by the workers39 comp program 0 Employer wants this so they don39t get sued 0 Employee wants this so they can get paid for their time off of work 0 Consolidated Omnibus Budget Reconciliation Act COBRA o If you lose or quit your job and you want to maintain your former coverage you have the right to do so for a limited time 29 months 0 COBRA doesn39t apply if Employee red for quotgross misconductquot OOOO 0 Employee Retirement Income Security Act ERISA 0 Federal law that sets minimum standards for most voluntarily estabished pension and health plans in private industry to provide protection for individuals enrolled in these plans 0 Under ERISA employers must provide pensionhealth plan participants Plan information Assure duciary responsibility Grievance and appeals process for participants to receive bene ts from the plan Right to sue for bene ts and breaches of duciary duty 0 Occupational Safety and Health Act of 1970 OSHA o Requires that all employers provide a safe work place 0 The administration is responsible for setting the standards under OSHA 0 Also responsible for enforcing the Act through inspections and levying of nes against violators 0 quotEmployment At Willquot Doctrine o Permits employer to re their employee for any reason they see t or no reason at all 0 Exceptions Implied contract Prove that employer said quotwe will employ you for 3 yearsquot Violation of Public Policy c Having to leave work for jury duty or military duty Implied Covenant of Good Faith and Fair Dealing o If the employer res you due to any of these reasons which don39t count you can sue for quotwrongful dischargequot 2 week notice isn39t required but it s smart so you don39t burn bridges and stain your reputation 0 Can39t re them based on Gender or race 0 Can re them based on Political views No reason 0 SC is an employment at will state 0 Employee Privacy in the Workplace 0 Don t have rights to privacy at work If you look at porn at work and get caught sorry sucks for you Wednesday Sept 30 Notes 0 Employee Privacy in the Workplace continued 0 Omnibus Crime Control and Safe Streets Act of 1968 Employers can39t listen in on private phone calls Employers can ban personal calls and monitor them for compliance If an employee breaks these rules they can be ned up to 10000 0 Electronic Communications Privacy Act ECPA of 1986 The only privacy an employee has is through email or cell phones Says you can39t intentionally intercept communication through these devices or disclose to someone what was said 0 Labor Law 0 Wagner Act of 1953 encourages labor unions and provides for quotcollective bargainingquot Collective Bargaining negotiations between employer and group of employees to determine conditions of employment 0 TaftHartley Act of 1947 Labor Management Relations Act Designed to limit some of the powers unions had acquired under Wagner Act An amendment to the Wagner Act to reduce power of unions Found middle ground to produce the Labor Manaoement Relations Act 0 Labor Law continued 0 LandrumGriffin Act of 1959 Governs internal operations of labor unions quotLabor s Bill of Rightsquot in the Act designed to protect employees from their own unions 0 Labor Law continued 0 National Labor Relations Board NLRB Created by Wagner Act Interprets and enforces National Labor Relations Act Functions of NLRB Monitors employer during union election to make sure they39re t to represent their union Helps prevent and cure unfair labor practices Establishes rules to interpret the NLRA 0 quotGood Faithquot Requirements of National Labor Relations Act 0 Both employer and employee must Meet at reasonable times to talk with good intentions Sign a written agreement if one is reached If you want out of the contract you must give a 60 day notice to the other party Strikes or lockouts during the 60 day notice 0 Strikes Pickets and Boycotts o Strike temporary concerted withdraw of labor Just not go into work 0 Picket designed to inform public of labor dispute Hold the signs up and march around 0 Boycott Refusal to deal with purchase goods from or work for a business You can boycott the farm that provides peanuts to Jiffy to boycott Jiffy itself You have to boycott Jiffy directly Ch 43 0 Employment At Will review 0 See slide in Ch 42 0 Federal Employment Laws 0 Provide minimum protection for employees 0 States can give their employees more rights but have to at least provide the minimum amount federal supremacy 0 Title VII of the Civil Rights Act 0 Protects employees against discrimination based on Race color religion national origin gender 0 quotDisparate Treatmentquot vs quotDisparate Impactquot Discrimination o quotDisparate Treatmentquot intentional discrimination Requirements 0 Employee must demonstrate a quotprima faciequot case of discrimination Employer has to have a legit reason for their actions 0 Employee must show that the reason the employer gave is NOT legit Ex A man gets promoted and then comes out as gay his boss starts discriminating told him she could cure him of his homosexuality he declined and she got him red 0 quotDisparate mpactquot unintentional discrimination 0 Only difference is the initial stats 0 BurdenShifting o Disparate Treatment intentional 0 Sexual Harassment 0 Includes unwelcome sexual advances requests verbal or physical conduct If you sleep with me I39ll hire you 0 Makes employment decisions related to the individual dependent on submission to such conduct 0 Makes uncomfortable working environment Can be malefemale or same sex harassment o If it39s welcome it39s not harassment Friday Oct 2 Notes 0 Pregnancy Discrimination Act of 1987 o Expanded sex discrimination to pregnancy discrimination o Defenses to claims under Title VII BFOQ o Allows employer to discriminate in hiring based on gender religion or national origin only when it39s reasonably necessary in order for them to perform the tasks Job requires heavy lifting usually women can be discriminated against because they normally aren39t as strong 0 Merit You can create a test for all potential employees to take to get thejob You don39t want Homer Simpson launching a rocket o Seniority it39s legit if Applies equally to everyone Units follow industry practices Doesn39t have any illegal discriminatory purpose Doesn t have its genesis in discrimination o Bona Fide Occupational Quali cation may be based on 0 Gender Religion or National origin Race Color or customer preference are NOT covered 0 Except sexual privacy bathroom attendant 0 Procedure for ling a claim 0 Charge led with EEOC Sworn statement that names parties involved including the company Includes the nature of the act 0 EEOC Conciliation attempts o EEOC quotRighttoSuequot letter You can sue individually even though the EEOC doesn39t have the resources 0 Age Discrimination Act of 1967 ADEA o Says an employer can39t refuse to hire discharge or discriminate based on an employeeapplicant being 40 years old 0 For public and private employers as long as private companies have 20 employees 0 Providing a quotPrima Faciequot case of Age Discrimination regarding Termination of Employment 0 Plaintiff must provide facts as proof that they were discriminated against based on age 0 Must prove that They are 40 years old or older They were quali ed for the position They were red based on their age 0 Americans with Disabilities Act ADA o Says an employer can39t discriminate against employees with disabilities 0 Who is protected under ADA Who is protected under ADA 0 Has a physical or mental impairment that would interfere with normal activities Walking is a normal activity but is hard for those who qualify for a handicap tag 0 What you have to do to le a claim under ADA 0 Plaintiff must show that they meet all of the following Has a disability Could be capable to do the job if they didn39t have the disability Can prove that they have that disability Equal Pay Act of 1963 o Says that an employer can39t pay one gender more or less than the other if other quali cations like skill level are equal Defenses to an Equal Pay Act lawsuit 0 Bona de seniority system 0 Bona de merit system 0 Pay system based on quotquality or quantityquot of production 0 Anything else other than gender Unemployment Discrimination Internationally o Extends protections of Title VII and ADA to US citizens working abroad for US employers
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