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Law 322 Final Exam (Exam 3) Study Guide

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by: Stephanie Notetaker

Law 322 Final Exam (Exam 3) Study Guide LAW 3220

Marketplace > Clemson University > Law and Legal Studies > LAW 3220 > Law 322 Final Exam Exam 3 Study Guide
Stephanie Notetaker
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These notes cover everything that will be on exam 3 during finals week.
Legal Environment of Business
Edward R. Claggett
Study Guide
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"If Stephanie isn't already a tutor, they should be. Haven't had any of this stuff explained to me as clearly as this was. I appreciate the help!"
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This 15 page Study Guide was uploaded by Stephanie Notetaker on Friday April 22, 2016. The Study Guide belongs to LAW 3220 at Clemson University taught by Edward R. Claggett in Fall 2015. Since its upload, it has received 80 views. For similar materials see Legal Environment of Business in Law and Legal Studies at Clemson University.

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Date Created: 04/22/16
Law  322   Exam  3  Study  Guide   Chapter  11     1. Goods  are  tangible  person  property,  does  not  apply  to  real  property   2. Merchants  are  involved  in  day  to  day  business   3. Article  two  governs  these  types  of  contracts   a. Designed  to  promote  commerce,  commercial  sales  of  goods   b. More  liberal  than  common  law  of  contracts   i. A  contract  can  be  formed  in  any  manner  that  shows  agreement   between  parties   ii. Requires  the  parties  to  act  in  good  faith   iii. If  some  terms  are  unclear,  then  article  two  and  the  courts  can   act  to  fill  the  gaps  and  fix  the  contract  to  make  it  binding   iv. Designed  to  complete  the  contract   v. Firm  offer=will  remain  open  for  a  fixed  period  of  time   1. It  MUST  stay  open  for  that  period  of  time,  you  cannot   withdrawal  like  in  common  law  unless  the  subject   matter  of  the  contract  is  destroyed  or  becomes  illegal   vi. Statute  of  Frauds-­‐what  must  be  writing  to  be  enforceable     1. Any  contract  subject  to  article  two  for  the  sale  of  goods   for  $500  or  more  must  be  in  writing  to  be  enforceable   2. Businesses  put  almost  every  contract  in  writing   vii. Parole  of  Evidence  Rule-­‐oral  evidence  or  testimony   1. You  cannot  introduce  oral  evidence  or  testimony  if  it   contradicts  the  written  words  of  the  contract   2. More  liberal  than  common  law   a. Can  introduce  oral  evidence  or  testimony  if  there   is  a  term  missing  in  the  contract  (as  a  way  to  fill   in  the  gap),  if  the  contract  is  vague,  or  if  you  are   trying  to  prove  fraud  was  committed  by  the   other  party  to  get  you  to  sign  the  contract   viii. For  price,  Look  at  parties  previous  behavior,  what  kind  of  price   have  they  used  in  the  past?  Look  at  other  people  in  the  same   type  of  business  and  look  at  their  terms.  If  the  quantity  is  left   blank:   1. Requirements  contract   a. Says  to  the  buyer,  how  much  do  you  require?   Seller  says  whatever  you  require  I  will  produce   at  the  time  they  have  entered  into  the  contract   2. Output  contract   a. Looks  at  the  seller  and  asks  how  much  can  they   produce  and  the  buyer  says  they  will  take  the   entire  output   ix. Cash  on  delivery-­‐pay  me  when  the  goods  show  up   1. Don’t  leave  payment  terms  blank  if  you  are  the  buyer   x. Sellers  primary  obligation  is  to  deliver  goods  in  accordance   with  the  contract-­‐  “Get  me  100  widgets  in  60  days”  If  the  seller   does  this,  then  the  buyers  primary  obligation  is  to  pay  for  those   widgets  in  accordance  with  the  contract   xi. Buyers  initial  right  is  to  inspect  the  goods  they  receive,  if  they   are  fully  in  accordance  with  the  contract  then  the  buyer  just   needs  to  pay,  if  some  or  all  don’t  accord  with  the  contract  the   buyer  has  3  rights:   1. Accept  all  the  goods   2. Reject  all  of  the  goods   3. Compromise  in  the  middle,  accept  some,  reject  some   xii. Buyer  has  the  obligation  to  immediately  notify  the  seller  about   the  problem,  and  the  seller  can  fix  the  problem  as  long  as  the   time  in  the  contract  hasn’t  passed     xiii. Warranties  under  Article  two   1. Every  contract  has  a  warranty  of  good  title,  good  clear   title   2. There  are  three  ways  a  seller  can  create  an  expressed   warranty     a. Any  promise  from  the  seller  to  the  buyer   b. Any  description  of  the  goods  given  to  the  buyer   c. Any  sample  or  model  of  the  goods  that  the  seller   gives  to  the  buyer   3. Implied  warranty  of  merchantability   a. Dealing  with  commerce,  implied  warranty  that   every  unit  will  be  useable  in  the  business,  exists   in  every  contract  subject  to  article  two   4. Implied  warranty  of  fitness  for  particular  purpose   5. All  warranties  create  strict  liability  for  the  seller   a. Article  two  says  seller  can  disclaim  warranties  if   they  use  clear  and  conspicuous  language  in  the   contract  and  the  buyer  signs  the  contract   i. Buyer  and  seller  can  agree  to  an  amount   of  damages  if  any  of  the  warranties  are   breached   ii. Buyer  can  allow  to  disclaim  one  or  two   warranties     xiv. Remedies  and  damages   1. Article  two  law  is  designed  to  put  the  non-­‐breaching   party  back  in  the  same  economic  position  had  the   contract  been  performed  (Monetary  damages)   2. Nonbreaching  party  has  the  right  to  mitigate  damages     3. Nonbreaching  party  must  notify  the  other  party  of  a   canceled  contract   4. If  the  buyer  breaches,  the  seller  has  the  right  to  get  all   the  goods  back   xv. Does  not  provide  for  punitive  damages  to  be  awarded,  only  see   if  fraud  is  committed     xvi. Applies  to  contracts  for  sale  of  goods  to  merchants  in  the   United  States   1. Article  two  doesn’t  control  foreign  buyers  or  sellers   a. Should  make  sure  the  contract  is  in  writing   b. Should  provide  how  the  parties  will  agree  to   resolve  disputes  (usually  arbitration)   c. If  you  don’t  want  to  arbitrate,  you  should  decide   where  you  are  going  to  litigate   d. CISG-­‐international  convention  (last  resort  if  you   didn’t  put  anything  in  your  agreement)   i. Applies  to  commercial  sale  of  goods  in   international  transactions   ii. Tries  to  fill  in  the  gaps,  but  doesn’t   specifically  provide  for  how  you  will  try   to  resolve  disputes   iii. Still  need  to  resolve  jurisdiction  and   choice  of  law   4. Uniform  Commercial  Code  designed  to  promote  uniformity  and  consistency   of  law-­‐Article  two  is  underneath  this     Chapter  13     1. Negotiable  Instruments-­‐transferred  for  value   a. Why  do  we  have  them?  Substitute  for  cash,  way  to  extend  credit  to   debtors   b. Requirements-­‐  law  is  in  article  three  of  UCC   i. Written  agreement   ii. Unconditional  order  or  promise  to  pay  (check,  promissory   note)   iii. Must  be  signed  by  the  maker  or  the  drawer   iv. Must  be  payable  on  demand  or  at  a  specified  time  (check)   v. Must  be  made  out  to  the  order  of  or  the  bearer   1. Bearer  instruments  are  risky  to  use  if  they  get  lost   vi. Must  be  a  certain  sum  of  money   c. Four  major  types     i. Three  party  instruments  (orders  to  pay)   1. Drawer-­‐creates  the  instrument   2. Drawee-­‐person  who  is  going  to  make  the  payment  like  a   bank  or  financial  institution   3. Payee-­‐who  is  going  to  get  the  money?   a. Drafts   i. Three  party  instrument,  order  to  pay,  can   be  payable  by  a  bank,  corporation,  a   charity,  a  trust,  can  be  payable  currently   or  in  the  future   b. Checks   i. A  check  is  a  draft   ii. A  check  is  draft  that  can  only  be  paid  by  a   bank  or  financial  institution  and  has  to   payable  on  demand   ii. Two  party  instruments  (promises  to  pay)   1. “I  am  promising  to  pay  you  back”   a. Notes     i. Promissory  note  (most  common)   1. I  will  pay  you  back  with  specified   interest  at  a  certain  date   ii. Collateral  note   1. Assets  of  the  borrow  if  they  don’t   pay,  they  can  seize  the  assets     2. Assets  of  the  debtor  or  the  person   borrowing=collateral   b. Certificates  of  deposit   i. Note  that  is  issued  by  the  bank  to  one  of   its  depositors   d. Merchants  want  to  sell  on  credit  so  that  they  can  expand  their   business,  sell  more  product   e. Must  have  a  credit  policy   f. If  you  are  going  to  sell  goods  on  credit,  it  is  good  to  get  a  security   interest   i. Have  the  person  sign  a  financing  agreement   ii. File  with  secretary  of  state  (perfecting  your  security  interest)   iii. Prefer  to  be  a  secured  creditor   g. Guarantor  and  surety   i. Co-­‐sign  for  someone  else’s  borrowing   ii. Surety  is  primarily  liable,  creditor  can  come  directly  against   the  surety   iii. Guarantor  is  only  secondarily  liable   h. Security  interest  over  inventory   i. Can  get  one  (floating  lean)   1. Floating  lean-­‐security  interest  in  inventory   ii. If  you  have  one  and  the  borrower  defaults,  you  have  the  right   to  go  reclaim  those  goods  as  long  as  it  doesn’t  breach  the   peace,  otherwise  get  the  police   i. Leans   i. Attachment  lean   1. Court  order   ii. Judgment  lean   1. Court  reaches  a  decision,  they  issue  a  judgment   2. May  need  to  ask  for  a  writ  of  execution,  allows  you  seize   assets  and  sell  them   3. Second  option  is  a  garnishment  order   iii. Mechanics  lean   1. Lean  on  real  property   2. Someone  does  work  on  your  home  or  condo  and  you   don’t  pay  them  for  it   3. Acts  like  a  mortgage  lean   4. Can  force  the  sale  of  your  real  property  if  not  paid   iv. Possessory  lean   1. Most  common  on  personal  property   2. Laptop  or  car  and  don’t  want  to  pay  for  it  when  you  pick   it  up   j. Bankruptcy   i. Federal  law   ii. Everything  is  frozen  the  minute  you  file  for  bankruptcy,  can’t   sue  you  for  non  payment   iii. If  an  individual  wants  to  file,  they  first  must  take  credit   counseling  to  see  if  they  really  need  to  file,  then  if  they  need  to   file  they  still  must  take  a  debtor  education  course  to  try  and   keep  them  from  coming  back  to  bankruptcy  court   iv. Three  types  of  filings:   1. Chapter  13-­‐Need  a  little  bit  more  time   a. You  give  a  plan  saying  you  need  a  certain  amount   of  time   b. Normally  will  give  you  up  to  5  years  to  get   current  on  your  debt   c. More  time  to  pay  off  creditors   d. Hope  is  that  they  go  on  with  their  live  at  the  end   2. Chapter  11   a. Businesses   b. The  business  working  with  the  trustee  and  judge   submits  a  plan  as  to  how  much  more  time  they   need  to  get  current   c. Typically  up  to  3  years   d. Business  continues  to  operate,  employees   continue  to  get  paid   e. Hope  is  that  the  business  goes  on  with  the  life   and  operates  normally  at  the  end   3. Chapter  7   a. Implies  to  both  businesses  and  individuals   b. File  if  you  are  hopelessly  in  debt   c. If  you  are  in  chapter  13  or  11  you  can  decide  to   do  this   d. Business  terminates,  no  more  jobs,  business   assets  are  liquidated   e. At  the  end,  most  of  your  debts  that  are  not  paid   off  are  legally  discharged   f. People  you  owe  the  money  to  are  out  of  luck   v. Priority  classes   1. Bankruptcy   a. Secured  creditors  get  paid  first   b. No  funds  then  no  money   c. If  there  are  assets,  they  can  first  to  the  secured   creditors     d. Worst  place  to  be  is  a  general  unsecured   creditor,  no  collateral     vi. Debts  that  don’t  get  discharged   1. Alimony,  child  support,  back  taxes,  student  loans   2. If  you  borrow  money  just  before  you  file  for  bankruptcy,   those  will  not  be  discharged   3. Assets  that  you  transfer  within  90  days  of  filing  for   bankruptcy,  those  asset  transfers  are  presumed  to  be   void,  bank  reaches  out  to  sell  them  and  uses  that  money   to  paid  creditors   vii. If  debtors  and  creditors  can’t  agree  then  you  have  no  choice   but  to  go  into  bankruptcy  court     viii. There  are  non  bankruptcy  alternatives  that  are  voluntary       Chapter  12     1. Sole  Proprietorship   a. Easiest,  most  flexible,  no  licensing  or  registration  requirements   b. Positives:  quick  and  easy  to  start  business,  you  are  the  business  so  any   income  or  loss  goes  on  your  tax  return   c. Negatives:  unlimited  liability,  personally  responsible  for  debts,  limited   ability  to  raise  capital,  business  terminates  if  you  want  to  stop   business   i. Debt  financing  (borrowing  money)   ii. Equity  financing  (issues  shares  of  stock)   2. Partnerships   a. Two  or  more  persons  or  businesses  come  together  to  work  as  co-­‐ owners   b. At  least  two  partners,  if  one  dies  the  partnership  terminates   c. Unless  the  partnership  agreement  says  otherwise,  they  share  in   management  and  share  profits  and  losses  equally     d. Partnership  is  not  a  separate  legal  entity,  they  are  personally  liable  for   debts,  unlimited  liability   e. Partners  get  to  participate  in  day  to  day  business  activities   3. Limited  Partnership   a. At  least  one  general  partner,  and  at  least  one  or  more  limited  partners   b. General  partner   i. Personally  liable  for  debts  of  partnership,  unlimited  liability   ii. Day  to  day  operating  decisions   c. Limited   i. Passive  investor,  limited  liability,  personal  assets  are  not  at   risk   ii. Does  not  participate  in  day  to  day  running  of  business   iii. If  you  lose  general  partner,  partnership  terminates   d. Corporations   i. Created  under  state  law   ii. Limited  liability,  owners/shareholders  have  limited  liability   iii. Treated  as  a  separate  legal  entity   iv. Personal  assets  cannot  be  reached  by  creditors   v. Piercing  the  corporate  veil   1. If  the  court  decides  it  was  not  run  as  a  corporation   2. Says  shareholders  are  personally  liable  for  debts  of  the   business   vi. Board  of  directions   1. High  level  management  authority   2. Hires  managers  to  run  day  to  day  business   vii. Shareholders   1. Owners  of  the  corporation,  put  capital  in  and  buy  stock   2. Elect  board  of  directors   viii. Managers   1. Making  day  to  day  decisions  with  guidance  from  board   of  directors   ix. Business  judgment  rule   1. Neither  directors  nor  managers  are  liable  from   problems  that  arise  from  honest  mistakes  in  judgment,   can’t  be  sued   2. They  would  be  if  they  are  grossly  negligent  or  engage  in   intentional  negligent  conduct     x. A  person  can  have  more  than  one  status  within  a  corporation,  a   corporation  can  be  a  manager,  a  shareholder,  a  creditor  and  on   the  board  of  directors   e. Professional  corporations   i. All  50  states  allow  them   ii. Do  give  some  limited  liability  to  shareholders   f. Limited  liability  company   i. Limited  liability,  don’t  want  personal  assets  at  risk,  but  I  don’t   want  two  levels  of  tax  (like  a  corporation)   ii. Gives  limited  liability  and  one  level  of  tax,  no  corporate  level   tax,  income  is  only  taxed  to  its  shareholders   g. Subchapter  S  Corporation   i. Largely  limited  to  family  businesses,  can  only  have  100  or   more  shareholders,  all  have  to  be  U.S  citizens   h. Joint  Ventures   i. Not  a  legal  entity   ii. Two  or  more  people  coming  together  to  complete  a  project   iii. When  the  project  is  finished  the  joint  venture  terminates   i. Cooperatives   i. Trying  to  combine  members  to  get  purchasing  power  like   Sam’s  Club  and  Costco   j. Syndicates   i. Group  of  people  coming  together  to  get  financing  for  a  specific   project,  just  an  agreement   4. Potential  liability  of  owners   a. Shareholder  or  limited  partner   5. Transferability  of  ownership   a. If  you  own  stock  in  a  publicly  traded  corporation  is  easiest  to  get  out   of   b. All  other  entities  have  varying  difficulties     6. Perpetual  existence   a. Corporation  will  continue  forever  unless:   i. Shareholders  voluntary  agree  to  dissolve  company    (50%  must   agree)   ii. Creditors  put  it  into  a  chapter  7  bankruptcy   b. No  other  entities  can  have  perpetual  existence   7. Capital   a. Publicly  traded  company  have  greatest  ability  to  raise  capital   b. Sole  proprietorship  has  least  ability  to  raise  capital   c. The  more  partners  you  have,  the  greater  ability  you  will  have   8. Taxes   a. One  negative  with  a  corporation   i. Some  income  can  get  taxed  twice   9. Franchising   a. Quicker  way  to  get  started,  large  parent  company  that  can  help  build   and  train  staff   b. Basic  agreement  that  controls  everything  is  the  franchise  agreement,   will  tell  you  how  much  support  you  get,  the  fees  you  will  have  to  pay,   what  events  can  terminate  agreement     Chapter  14   1. Agent   a. Exists  when  a  principal  gives  an  agent  authority  to  act  on  his  or  her   behalf   b. Used  because  they  are  somewhat  less  expensive  then  full  time   employees  might  be   c. Agency  relationship  can  be  terminated  at  any  time   d. Principal  gives  agent  authority  to  act   e. Can  be  created  by:   i. Agreement-­‐written  or  oral   1. Written-­‐power  of  attorney  (common  way)   ii. Ratification   1. Agent  doesn’t  have  author  from  principal,  agent  takes   an  action  and  the  principal  ratify  it   iii. Estoppel   1. Third  party  believes  the  agent  has  authority   iv. Operation  of  law   1. Emergency  situations   f. Actual  Authority   g. Implied  authority   i. If  you  hired  someone  as  an  agent  we  are  going  to  assume  they   have  all  authority  to  run  the  business   ii. Court  inserts   h. Apparent  Authority   i. Arises  if  they  agent  and  principal  are  sitting  at  a  bar  and  the   agent  negotiates  a  deal  with  a  third  party   i. Duties  of  the  parties  to  each  other   i. Act  in  good  faith   ii. Agent  has  a  duty  to  financially  account  to  the  principal   1. Finances  and  business  generated   j. Disclosed/Undisclosed  principal   i. Disclosed-­‐third  parties  know  who  you  are   ii. Undisclosed-­‐third  parties  don’t  know  the  agent   iii. If  disclosed  doesn’t  follow  through  with  deal,  third  party  can   sue  disclosed  not  sue  undisclosed   k. If  you  terminate  an  agency  agreement,  if  you  are  the  principal  you   should  notify  the  third  party,  because  the  apparent  authority  exists   2. Employees   a. Control,  the  more  control  you  have  over  the  persons  day  to  day   activity,  the  more  likely  they  are  an  employee   b. Work  for  one  person   c. Office  or  cubicle   d. Duty  to  report  to  employer   e. Training  or  supplies  from  employer   f. Agent  and  employee  acting  within  the  scope  of  employment,  can   create  tort  liability     i. Agent  can  create  tort  liability  for  the  principal   ii. Employee  acting  within  the  scope  of  his  or  her  employment,   vicariously  liability,  employer  is  vicariously  liable  for  its   employees   3. Independent  contractors   a. Operates  independently   b. Can  work  for  more  than  one  person   c. Can  schedule  their  own  work   d. Needs  training  or  supplies,  they  supply  it  themselves   e. No  liability  created  for  the  person  who  hires  them   4. Employee  handbooks   a. Good  to  have   b. Employers  need  to  be  careful   c. Can  create  a  legal  contract  with  employees   d. If  you  don’t  follow  what  is  in  the  handbook,  you  can  create  a  breach  of   contract   e. Can  put  something  in  the  book  saying  this  is  advisory   5. Almost  all  employees  are  considered  employees  at  will   a. Can  be  fired  or  quit  at  any  point  in  time   b. Exceptions:   i. Don’t  say  you  cant  be  fired   1. You  may  have  been  wrongfully  discharged   ii. Written  contract   1. If  you  get  fired  before  time  period  on  contract   2. Court  will  have  employer  make  the  rest  of  your   payments  to  you   iii. Bonuses  or  retirement  benefits   1. Court  will  make  sure  you  get  the  payments   iv. Refused  to  commit  an  illegal  act   v. Jury  duty   vi. Filed  for  bankruptcy   vii. You  will  get  damages  but  won’t  get  your  job  back   6. Negligent  hiring   a. Two  burdens:   i. Should  do  an  appropriate  background  check   ii. After  you  have  hired  them,  you  have  an  obligation  to  monitor   their  conduct,  if  you  do  something  not  within  company  policy   you  need  to  take  action   1. If  you  ignore  both  of  these  obligations,  more  serious   consequences  to  you     Chapter  15     1. Three  types  of  contracts  courts  will  look  at  to  see  if  with  public  policy   a. Exculpatory  agreements   i. One  party  promises  not  to  sue  another  incase  they  are  injured   by  a  tort  or  another  event   ii. Before  we  make  you  a  job  offer  lets  make  this  agreement   iii. Court  says  there  is  no  equal  bargaining  power  here,  this  is   against  public  policy,  we  won’t  enforce  this   b. Non  Compete  Agreements   i. If  it  is  limited  in  a  duration  of  time,  we  will  enforce  it   ii. If  it  is  too  long  of  a  period  of  time,  we  wont  enforce  it   c. Anti-­‐rating  covenant   i. Employee  says  if  I  leave  the  employer  I  wont  reach  back  into   the  company  and  try  to  hire  other  employees   2. Substance  Abuse   a. Expensive  to  U.S  businesses   b. What  cant  businesses  do  to  minimize  this?   i. If  there  is  a  union  that  represents  the  employees,  employers   can  only  drug  test  them  if  the  collective  bargaining  agreements   allows  it   1. Collective  bargaining  agreement-­‐union  negotiates  with   employer  every  3  years     ii. If  no  union,  the  company  should  have  a  clear  policy  on  when  it   will  drug  test   1. Pre-­‐employment  testing-­‐during  interviewing  process   2. Annual  testing-­‐part  of  a  physical   3. Random  testing-­‐if  it  is  part  of  the  company  policy  and  it   is  a  job  where  safety  is  an  issue  it  is  normally  permitted   4. Drug  testing  after  accidents-­‐generally  fine  as  long  as   public  safety  is  a  concern  (truck  driver)   iii. Outside,  independent  lab  if  you  are  going  to  do  drug  testing,   don’t  do  inside  the  company   iv. Drug  Free  Workplace  Act   1. Federal  act   2. More  than  25,000  dollars  worth  of  business,  you  have   certify  that  you  have  a  drug  free  workplace     v. Occupational  Safety  and  Health  Act   1. OSHA  is  concerned  with  employers  making  the   workplace  safe  for  their  employers   2. Send  out  inspectors  based  on  number  of  accidents   reported  at  businesses   3. Inspectors  looks  for  risky  dangerous  working   conditions,  hazardous  chemicals  contained  properly   4. Will  write  of  report,  employer  has  a  certain  amount  of   time  to  fix  the  problem  and  they  can  be  closed  down  if   they  don’t  do  this   3. Workers  Compensation   a. State  Insurance  plan,  every  state  has  it   b. If  an  employee  got  injured  on  a  job  beforehand,  only  way  was  to  file  a   tort  cause  of  action   c. States  pay  premiums  based  on  their  ratings,  more  claims=higher   premiums   d. If  employee  is  hurt  at  work  from  a  negligent  based  tort,  you  cannot   sue  the  employer,  you  can  only  file  a  workers  comp  based  claim   i. Quicker,  medical  expenses  reimbursed,  getting  back  to  job   quickly   4. Family  and  Medical  Leave  Act   a. Federal  law   b. Private  employees  with  50  or  more  employees  and  government   employers   c. It  says  that  employers  have  to  offer  as  a  minimum  up  to  12  weeks  of   unpaid  leave  for  an  employee  to  either  have  a  child,  adopt  a  child,  or   to  take  care  of  a  sick  relative  or  themselves,  and  when  they  come  back   you  have  to  give  them  the  same  or  comparable  job     5. General  Regulations   a. Immigration   i. Employers  have  to  obtain  and  retain  documentation  that  every   employee  they  hire  is  in  the  United  States  legally   b. Federal  minimum  wage  law   i. Family  of  4  can’t  live  on  minimum  wage,  a  number  of  states   have  raised  it   1. Pros:  fewer  minimum  wage  jobs  available   2. Cons:  Other  employers  will  want  a  raise  who  are  above   them   c. WARN  Act   i. Only  applies  to  employers  with  100  or  more  full  time   employees  and  you  want  to  take  an  action  that  is  going  to   negatively  impact  50  or  more  of  those  employees  like  layoffs  or   plant  closures  than  you  must  give  them  at  least  60  days   advance  notice   d. ERISA   i. Designed  to  protect  employee’s  retirement  benefit  plans   e. Labor  Laws   i. National  labor  relations  act  is  made  up  of  3  separate  acts   1. Acts:   a. Wagner   b. Taft  Hartley   c. Landrom  Griffin   2. Created  the  national  labor  relations  board   3. Exclusive  jurisdiction  to  hear  unfair  labor  complaints   from  any  business  in  interstate  commerce   4. Deals  with  relations  between  labor  unions  and   employers   5. Remedies:  back  pay,  front  pay,  issue  an  injunction  like   stop  engaging  in  it,  asses  fines  and  penalties,  order  the   employer  to  reinstate  the  worker   ii. Union  process   1. If  the  union  wants  to  get  in  and  represent  employer,   they  must  have  30%  employees  sign  the  authorization   cards,  then  an  election  is  held   2. More  than  50%  of  employees  voted  for  them,  they   become  the  exclusive  bargaining  agent  for  100%   employees   3. If  elected,  then  employees  have  to  decide  if  they  want  o   be  a  member   a. If  yes,  they  must  pay  dues   b. If  not,  they  must  be  agency  and  union  fees   c. Exception:  if  you  work  in  a  right  to  work  law   state   i. Says:  in  our  state,  if  you  don’t  want  to  be  a   member  you  cannot  be  forced  to  pay   agency  and  union  fees  (SC  is  one)   iii. Collective  bargaining  process   1. When  it  expires,  both  parties  have  an  obligation  to  sit   down  and  negotiate  a  new  one  in  good  faith   a. Economic  Pressure   i. Employees  can  strike,  hurts  business   ii. Primary  boycott   1. Legal,  when  you  strike  against   your  employer   iii. Secondary  boycott   1. Not  legal,  strike  against  companies   that  are  not  your  employer   (customer)   b. Employer  can  do  a  lock  out  and  tell  employees   not  to  come  back  to  work  until  there  is  a  new   agreement   c. Employer  can  go  out  and  hire  replacement   workers   Chapter  16   1. Equal  Pay  Act   a. Equal  pay  for  equal  work  regardless  of  sex   2. Title  7     a. Cant  discriminate  in  any  employment  decision  because  a  person  is  in   one  of  the  following  classes:   i. Race   ii. Color   iii. Sex   iv. Religion   v. National  origin   b. Religious  practices   i. Employer  must  make  a  reasonable  accommodation  (minor   expenditure)   ii. If  it  is  more  than  minor  then  they  don’t  have  to  do  it   c. Affirmative  Action   i. Effort  to  correct  what  is  a  discriminatory  hiring  practice   ii. Two  types:     1. Voluntary   a. Employer  institutes  it  and  tells  HR   2. Involuntary   a. Found  to  have  discriminated  by  the  EEOC,  they   can  mandate  that  you  implement  a  plan   3. Pregnancy  discrimination  act   a. Employer  cant  discriminated  because  of  pregnancy     4. Sexual  harassment   a. All  sexual  harassment  is  prohibited   5. Age  discrimination   a. Only  implies  to  20  or  more  employees   b. Can’t  discriminate  to  any  person  over  the  age  of  40   6. Bringing  a  charge  of  discrimination:   a. Go  to  the  EEOC  office  or  fill  it  out  and  mail  it  in   b. You  have  180  days  to  file  your  complaint   c. Most  states  allow  up  to  300  days  in  the  state  EEOC  offices   d. EEOC  investigates  the  complaint   e. They  might  dismiss  it,  they  might  try  to  settle  it,  otherwise  issue  a   finding  and  give  you  a  right  to  sue  letter  to  bring  to  the  courts   7. Constructive  discharge   a. Haven’t  really  been  fired  by  the  employer  but  if  they  make  the   working  conditions  so  intolerable,  you  can  still  file  for  wrongful   discharge   b. Unbearable  working  conditions  and  you  leave   8. If  it  appears  you  have  a  case  of  discrimination,  burden  shifts  to  employer:   a. Business  necessity   i. Qualification  that  relates  to  the  ability  to  do  this  job   1. Licensing   ii. Law  says  this  is  not  discriminating  (licensed  electrician)   b. Use  of  professional  developed  ability  test   i. Tests  developed  by  third  parties  and  you  can  show  that  people   who  scored  higher  on  this  test  then  people  who  scored  lower,   you  are  allowed  to  make  employment  decisions  based  on  these   results   c. Based  on  seniority  or  merit   i. Promoting  someone  is  allowed   ii. Promoting  someone  based  on  merit,  who  produced  better   product  that  is  allowed   d. Bona  Fide  occupational  qualification   i. Discrimination  might  be  ok  if  you  can  show  that  a  person  of  a   certain  class  is  needed  to  be  effective  in  that  role   1. Modeling  women’s  clothes   2. 90%  of  customers  are  a  certain  religious  background,   you  can  hire  someone  of  that  background   e. Voluntary  early  retirement  plan   i. Just  the  older  people  in  your  workplace   ii. Can’t  be  mandatory,  they  have  the  choice  so  the  law  says  it  is   ok   9. Disability  discrimination   a. Americans  with  disability  acts   i. Protected  disabled     ii. If  you  think  you  have  been  discriminated,  process  is  the  same,   do  it  with  the  EEOC  office   iii. Must  show:   1. You  have  a  disability   2. The  potential  employer  knew  or  should  have  known   about  your  disability   3. Can  perform  that  job  with  reasonable   accommodation=minor  expenditure   4. Employer  refused  to  make  the  reasonable   accommodation   iv. What  is  a  disability?   1. Physical  or  mental  impairment  that  limited  your  ability   to  perform  major  life  activities   a. Major  life  activities:   i. Walking,  seeing,  hearing,  taking  care  of   yourself   2. If  you  have  that  disability,  you  are  protected,  if  you  ever   had  that  disability  you  are  protected,  even  if  you  never   had  that  disability  but  people  treat  you  like  you  have  it   then  you  are  protected   v. Reasonable  accommodation   1. Changing  work  schedule,  changing  work  station   2. Minor  amount  of  money   vi. Remedies:   1. They  will  be  ordered  to  make  the  reasonable   accommodation  and  hire  the  individual     2. Fines  and  penalties  and  punitive  damages  could  come   into  pay,  and  attorney  fees,  not  always    


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