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BUSA 2106 Final Exam Notes

by: Varsha Mandiga

BUSA 2106 Final Exam Notes BUSA 2106

Marketplace > Georgia State University > BUSA 2106 > BUSA 2106 Final Exam Notes
Varsha Mandiga
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Final Exam Review Sheet
Legal Environment Of Business
Study Guide
BUSA 2106
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This 6 page Study Guide was uploaded by Varsha Mandiga on Tuesday April 26, 2016. The Study Guide belongs to BUSA 2106 at Georgia State University taught by Grelecki in Spring 2016. Since its upload, it has received 144 views.


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Date Created: 04/26/16
Agent: Employee/Employer,  Entertainment  Agent/Talent,  Real  Estate  Agent/Buyer  or  Seller,  Insurance  Agent/Insured,  Guardian/Ward,  Exe cutor/Decedent   Agency:  Relationship  created  when  one  person  (PRINCIPAL)  shows  the  intent  to  have  another  person  (AGENT)  act   on  his/her  behalf   Look  to  the  acts  of  the  PRINCIPAL  (party  to  be  bound  by  actions  of  another)  when  trying  to  determine  whether  agency  relations hip  exists   Creation  of  Agency  (Typically,  by  Act  of  the  Parties):  Agent  &  Principal  Agree  (actual  authority),  Principal  acts  like  someone  is  their  agent,  even  though  there  is  no  agreement   (apparent  authority),  Principal  agrees  to  be  bound  by  previous  acts  of  another,  even  though  there  was  no  authority  for  that  person  to  act  ( ratification)   Duties  &  Remedies   Duties  of  Agent  to  Principal   •   Duty  of  Reasonable  Care/Duties  under  Contract   •   Duty  of  Loyalty   •   Fiduciary  duty  as  one  of  undivided  loyalty,  must  disclose  interests  adverse  to  those  of  principal ,  and  Can  breach  when  acting  for  two  adverse  principals   •   Duty  of  Obedience   •   Must  obey  all  reasonable  directions  and  agent  liable  for  losses  due  to  failure  to  obey   •   Duty  to  Notify   •   Must  notify  principal  of  matters  that  come  to  agent’s  knowledge  and  affecting  the  subject  of  the  agency     •   Knowledge  of  agent  imputed  to  principal  (unless  agent  acts  in  own  interest,  adverse  to  principal  or  attempting  to  commit  fraud)   Remedies  of  Principal  (for  agent’s  breach  of  duty)   •   Action  for  Damages   •   Breach  of  Contract  and  sue  for  Torts  (Fraud,  Conversion,  Negligence,  etc.)   •   Action  for  Secret  Profits   •   Where  agent  breaches  fiduciary  duty  and  profits,  principal  may  recover  profits/property  held  and  An  employed  as  a  clerk  at  P’s  store.    All  goods  are   marked  with  a  fixed  price.    A  sells  a  $200  radio  to  customer  for  $250,  pocketing  $50.    A  must  give  P  the  $50,  even  th ough  P  not  injured   •   Withhold  Compensation   •   In  circumstances  of  intentional  tort  or  intentional  breach  of  fiduciary  duty,  principal  may  refuse  to  pay  agent,  in  addition   to  other  remedies   •   An  employed  on  commission  basis  by  P  to  act  as  agent  for  sale  of  P’s  lan d.    A  breaches  fiduciary  duty  to  P  by  accepting  additional  commission  from   buyer.    P  can  withhold  A’s  commission   •   Request  an  Accounting   Duties  of  Principal  to  Agent   •   Duty  to  Cooperate   rd •   Principal  must  cooperate  and  not  interfere  and  if  P  hires  A  to  sell  his  empty  factory  building  on  commission,  P  cannot  lease  the  building  to  a  3  party   •   Duties  Imposed  by  Contract  (compensate,  reimburse,  etc.)   Remedies  of  Agent   •   Breach  of  Contract   •   Agent’s  Lien   •   Possessory  lien  (claim  against  any  of  P’s  property  held  by  A)  for  any   money  due,  A  purchases  rare  coins  for  P  with  his  own  funds.    P  does  not  reimburse   A.    If  A  still  has  the  coins,  A  has  a  lien  on  the  coins  and  may  retain  them  until  P  reimburses  A   Agency  Power  (Agents  can  have  actual  (agreed  upon)  authority,  either  expresse d  or  implied)   Express  Actual  Authority     •   Authority  contained  within  the  “4  corners”  of  agency  agreement  (written  or  oral  communication  from  principal  to  agent) ,  extravagant  language  limited  to  actual   business  intent  (“A  to  conduct  all  business  for  P”),  specific  language  prevails  over  general,  agent  can  act  upon  reasonable  belief  based  on  principal’s  words  and  acts     Implied  Actual  Authority   •   Implied  from  Express  Authority   •   Express  authority  to  accomplish  a  result  implies  authority  to  use  all  means  reasonably  ne cessary  to  accomplish  it  (“to  manage  .  .  .  “)   •   Implied  from  Custom  and  Usage   •   Implied  authority  to  act  in  accord  with  general  practices   •   Implied  by  Acquiescence   •   Results  from  principal’s  acceptance  of,  or  failure  to  object  to,  series  of  unauthorized  acts  that   reasonably  leads  agent  to  believe  he  has  authority  to  do   the  same  in  the  future  (A  order  supplies)   •   Implied  Because  of  Emergency  or  Necessity   •   With  no  specific  instruction  for  emergency,  agent  has  implied  authority  to  take  reasonable  measures   That  “agreed  upon”  Actual  Authority  can  end.  Actual  Authority  can  be  terminated  by:  Decision  of  party(ies)  to  end  it,  By  happening  of  an  event  (sale),  By  change  of   circumstances  (property  destroyed),  By  breach  of  Agent’s  fiduciary  duty,  and  By  operation  of  law  (death;  dissolution).   Absent  “agreed  upon”  authority,  agent  can  also  have  or  gain  authority  based  on  what  the  principal  says/does  or  doesn’t  say/do  in  a  given  situation,  causing  some  other  person   to  think  the  agent  has  authority.   Apparent  Authority:  Principal  “holds  out”  another  as  possessing  certain  authority  by  affirmative  action  (“A  is  my  agent”)  or  inaction  (A,  in  front  of  P,  says,  “I   am  P’s  agent,”  and   P  says  nothing),  Effectively  induces  others  to  believe  authority  exists  (reasonable  reliance) .   Ratification:  Principal  must  know  material  facts,  Principal  must  accept  entire  transaction,  Principal  must  have  capacity,  and  can  be  express  or  implied.   Liabilities   rd Agency  relationships  typically  exist  for  the  purpose  of  creating  business  deals  (contracts)  between  the  Pri ncipal  and  some  3  party,  so  what  happens  if  the  contract  is   breached?  Typically,  a  3  Party  can  only  sue  the  Principal,  not  the  agent,  b/c  the  agent  is  acting  for/as  the  Principal   rd •   But,  both  Agentrd  and  Principal  can  be  liable  to  3  party  if:   rd •   3  party  does  not  know  who  the  Principal  is  or  3  party  does  not  know  there  even  is  a  Principal  (think  agent  acting  for  self)     •   Typically,  only  Principal  can  sue  the  3  party,  unless:   rd rd •   3  party  does  not  know  who  the  Principal  is  or  3  party  does  not  know  there  even  is  a  Principal  (think  agent  acting  for  self)     Employment:  How  do  we  define  an  Employee  (v.  independent  contractor)?   Important  because  an  employee  is  an  agent,  but  an  independent  contractor  is  not.  Look  to  the  Time,  Method,  and  Manner  in  which  “worker”  doe s  the  work.  How  much   control  does  the  “boss”  have?  Consider  things  like:  Characterization  by  parties  (What  did  they  say?) ,  Understanding  of  the  parties  (What  did  they  think?) ,  Distinct  businesses   (“worker”  is  separate  entity),  Level  of  supervision  by  “boss”,  Level  of  specialized  skill  required  of  “worker”,  Tools  and  facilities  utilized  (Who  owns  them?),  Period  of   employment  (definite/indefinite),  and  Basis  of  compensation  (salary/lump  sum).   Employment  At  Will   Employees  typically  presumed  to  be  employed  “at  will,”  so…  Employers  can  fire  employees  without  cause  at  any  time  (limited  by  anti -­‐discrimination  laws),  Employees  can  quit   at  any  time.  Unless  .  .  .  An  employment  contract  exists  setting  forth  terms  different  from  employment -­‐at-­‐will,  and  Employer  indicates  some  other  way  that  it  will  fire  only  “for   cause”     Employment  Discrimination:  What  is  it?     Prohibited,  inequitable  treatment  of  employees  (or  job  applicants) .  Based  on  race,  color,  national  origin,  gender,  religion,  age,  or  disability   Requirements  to  Claim?  Employer  must  be  subject  to  the  specific  law(s)  and  Plaintiff  MUST  be  a  member  of  a  Protected  Class .  Protected  Class  is  a  group  of  persons  protected   by  particular  laws  based  on  the  group’s  defining  characteristics  Plaintiff  must  have  a  race,  color,  religion,  national  origin,  gender,  age,  or  disability.   Claims  exist  under:   •   Title  VII  of  the  Civil  Rights  Act  of  1964  (covers  race,  color,  national  origin,  religion,  gender,  sexual  harassment) ,  Age  Discrimination  in  Employment  Act  (ADEA),   Americans  with  Disabilities  Act  (ADA),  State/Local  Law  equivalents  (Federal  laws  have  state  and  local  counterparts  and  State/local  laws  may  apply  to  more   employers  or  broaden  the  categories  of  discrimination  ( i.e.,  sexual  orientation,  marital  status  and  political  affiliation))   Equal  Employment  Opportunity  Commission  (EEOC)   •   Alleged  victim  must  file  initial  claim  (Char ge  of  Discrimination)  with  EEOC,  before  suing  employer;  AND  within  180  days  of  alleged  discriminatory  conduct.   •   EEOC  can  decide  not  to  investigate  the  claim     •   EEOC  can  investigate  the  claim  and  decide:  There  is  no  violation  and  sends  a  Right-­‐to-­‐Sue  notice;  OR  There  is  a  violation  and  attempt  to  settle  the  matter  with  the   employer.   •   If  the  EEOC  cannot  settle  a  matter,  the  EEOC  legal  staff  determines  whether  a  lawsuit  is  necessary   •   If  the  EEOC  does  not  file  a  lawsuit,  EEOC  sends  the  alleged  victim  a  Right-­‐to-­‐Sue  notice   Title  VII   •   Prohibits  job  discrimination  on  the  basis  of  race,  color,  national  origin,  religion,  or  gender ,  prohibits  job  discrimination  at  any  stage  of  employment  (incl.   application),  Prohibits  both  intentional  (disparate  treatment)  and  unintentional  (disparate  impact)  discrimination ,  Applies  to  employers  with  fifteen  (15)  or  more   employees,  and  The  Equal  Employment  Opportunity  Commission  (EEOC)  monitors  compli ance  with  Title  VII   Disparate  Treatment   Individual  (s)  intentionally  singled  out,  Can  be  established  by  direct  evidence  of  discrimination,  but  very  rarely  see  “smoking  g un”  discrimination  or  an  openly  discriminatory   policy,  and  Most  often  proven  by  indirec t/circumstantial  evidence,  which  requires  a  “burden  shifting”  analysis   Disparate  Treatment  Burden-­‐Shifting  Analysis   1.   Plaintiff  (P)  must  establish  prima  facie  case:   •   P  is  member  of  protected  class,  P  applied  and  was  qualified  for  the  position  at  issue ,  P  was  rejected  by  employer  (an  adverse  action),  and  employer   continued  to  seek  applicants  and  filled  the  position  with  lesser -­‐qualified  person  not  in  the  protected  class  (non -­‐member  treated  more  favorably)   2.   Employer  must  then  articulate  legally  defensible,  non -­‐discriminatory  reason  for  the  action  (typically,  BFOQ,  discussed  below)   3.   P  must  then  show  that  employer’s  reason  is  “pretext”   (Not  true  and  offered  to  cover  true  intent)   Disparate  Impact   Ø   Employer  has  a  facially-­‐neutral  employment  policy  AND  Application  of  the  policy  has  a  discriminatory  impact  on  an  entire  group,  even  without  specific  intent  to   discriminate.  Alleged  victim  must  prove  that  the  policy  significantly  &  adversely  impacts  a  protected  class .  Requires  statistical  evidence  (which  employer  can  rebut)   regarding  employer’s  workforce,  as  compared  to  the  relevant  labor  force .  To  defend,  employer  must  prove  a  manifest  relationship  between  the  employment  practice   and  a  business  need  (business  necessity,  discussed  below) .  Alleged  victim  must  then  prove  that  an  alternative  employment  policy  would  accomplish  the  same  goal   without  a  discriminatory  impact   Special  Considerations   Ø   Religion:  Cannot  require  (or  forbid)  employees  to  participate  in  any  religious  activity .  Must  “reasonably  accommodate”  religious  practices  o f  employees  (change   schedules),  unless  it  creates  undue  hardship  (build  altar).  “Religious  belief”  need  only  be  sincerely  held  by  employee   Ø   Gender:  Cannot  classify  jobs  as  “male”  or  “female,”  unless  can  prove  gender  is  essential  to  job  (BFOQ) ,  and  Pregnancy  Discrimination  Act  –  cannot  discriminate  due  to   pregnancy,  but  do  not  have  to  provide  special  accommodations .   Ø   National  Origin:  No  “English  only”  job  classifications  and  cannot  discriminate  based  on  accents,  unless  job  requires  (call  center)   Constructive  Discharge  (What  if  an  employee  leaves  job  voluntarily,  so  there’s  no  overt  adverse  employment  action? )   •   If  employer  causes  employee’s  working  conditions  to  be  so  intolerable  that  a  reasonable  person  in  employee’s  position  would  f eel  compelled  to  quit,  that  is   “adverse  action”   •   P  must  present:  objective  proof  of  intolerable  working  conditions,  which  employer  knew  or  had  reason  to  know  of,  and  failed  to  correct  within  a  reasonable  time.   •   Employee  can  get  loss  of  income  and  back  pay,  despite  voluntarily  departure   •   Can  be  used  in  connection  with  any  kind  of  discrimination,  but  most  often  in  sexual  harassment   Sexual  Harassment  (Hostile  Work  Environment)   •   Alleged  victim  is  a  member  of  a  protected  group  (gender)  and  Harassment    occurred  because  of  gender   •   Alleged  victim  was  subject  of  unwelcome  harassment  (if  participate  in  the  behavior,  not  unwelcome)   •   Harassment  must  have  been  sufficiently  severe  or  pervasive  (multiple  occurrences),  so  as  to  alter  the  terms  and  conditions  of  employment   •   objectively  offensive  to  a  reasonable  person,  given  the  totality  of  circumstances  and  interferes  with  ability  to  do  the  job   •   Can  include  quid  pro  quo  harassment  and  Employee  still  must  abide  by  whatever  reporting  procedures  are  established,  made  known,  and  followed  by  employer   Retaliation   •   Employer  cannot  take  adverse  action  as  a  result  of  employee  making  a  charge,  testifying,  or  participating  in  investigation   •   Must  show  action  was  one  that  would  likely  have  dissuaded  a  reasonable  employee  from  making/supporting  a  charge   Hot  Topic:  LGBT  Discrimination   •   There  is  no  federal  law  prohibiting  employment  discrimination  against  individuals  based  on  sexual  orientation  or  gender  ident ity   •   Employment  Non-­‐Discrimination  Act  (ENDA)  introduced  in  2013   •   22  states  &  DC  have  laws  prohibiting  employment  discriminati on  based  on  sexual  orientation   •   20  states  &  DC  have  laws  prohibiting  employment  discrimination  based  on  sexual  orientation  &  gender  identity   •   EEOC  has  held  that  discrimination  because  individual  is  lesbian,  gay,  or  bisexual  is  discrimination  based  on  gender   •   Gender  discrimination  includes  adverse  actions  taken  because  of  individual’s  failure  to  conform  to  gender  stereotypes     •   LGB  individual  may  experience  sexual  harassment   ADEA   •   Prohibits  employment  discrimination,  on  the  basis  of  age,  against  individuals  forty   (40)  years  of  age  or  older   •   Does  not  prohibit  discrimination  just  because  employee  is  40  or  older,  but  because  discrimination  is  based  on  age;  however,  p rotected  class  includes   only  those  who  are  40  or  older   •   Look  to  see  if  employee  preferred  is  substantially  younger  (5+  years),  rather  than  simply  outside  the  protected  class  ( i.e.,  if  both  employees  over  40)   •   Can  favor  an  older  worker  over  a  younger  one,  even  if  both  workers  are  age  40  or  older ,  Applies  to  employers  with  twenty  (20)  or  more  employees ,  and  EEOC   enforces  ADEA,  as  with  Title  VII   Alleged  victim  must  show:   •   Member  of  a  protected  group  (40  or  older) ,  Qualified  for  the  position  at  issue,  Fired  or  not  selected  based  on  age  discrimination ,  and  Someone  outside  the   protected  class,  or  substantially  younger ,  treated  more  favorably.   •   Alleged  victim  must  establish  “but  for”  causation,  that  age  discrimination  was  the   only  reason  for  the  adverse  employment  action   •   If  defendant  has  a  non-­‐discriminatory  reason  for  the  action,  unlikely  to  find  a  violation  (no  “burden  shifting”)   ADA   •   Requires  employers  to  make  reasonable  accommodations  for  any  qualified  individual  with  a  disability   •   Qualified  individual  is  one  who  can  perform  the  essential  job  functions   •   Reasonable  accommodations  are  only  required  to  assist  the  disabled  e mployee  in  performing  essential  job  functions   •   Courts  give  deference  to  employers  on  what  are  essential  functions  of  a  job  (showing  up  is  always  an  essential  function)   •   Reasonable  accommodations  cannot  cause  the  employer  undue  hardship     •   Reasonable  accommodations  may  include  modifying  the  physical  workplace  or  just  the  work  schedule   •   Applies  to  employers  with  fifteen  (15)  or  more  employees   •   EEOC  enforces,  as  with  Title  VII  and  ADEA   Alleged  victim  must  show:  A  disability,  Otherwise  qualified,  but  no  accommodation  made  and  Excluded  from  employment  because  of  disability   3   ways  to  establish  a  disability:   Physical  or  mental  impairment  substantially  limits  one  or  more  of  the  major  life  activities  (interfere  with  ability  to  do  bro ad  range  of   jobs),  A  record  of  such  impairment  (impairment  from  prior  injury) ,  and  Being  regarded  as  having  such  impairment,  even  if  not  actually  disabled  ( i.e.,  facial   disfigurement).   Minor  or  temporary  impairments  (sexual  behavior  disorders,  kleptomania,  pregnancy,  casual  illegal  drug  use)  not  p rotected   Alcoholism  is  a  disability,  but  employers  do  not  have  to  accept  behavior  they  would  not  otherwise  accept  ( i.e.,  drunkeness)   Employer  Defenses   Bona  Fide  Occupational  Qualification   •   Defense  against  Title  VII  Disparate  Treatment  claims  and  ADEA  claims .  Employers  can  treat  people  differently  based  on  gender,  religion,  national  origin,  or  age,   if  a   particular  gender,  religion,  or  national  origin  is  a  BFOQ .  A  particular  gender,  religion,  national  origin,  or  age  is  reasonably  necessary  for  normal  operation  of  a   business  (cannot  be  successful  in  the  job  without  that  characteristic) .  Cannot  be  based  on  race.  Cannot  be  based  on  stereotypes  or  assumptions   Business  Necessity   •   Defense  against  Title  VII  Disparate  Impact  claims .  Employer  must  establish  that  the  employment  policy  satisfies  a  business  need  or  is  closely  related  to  job   performance.  A  business  need  could  be  to  solve  some  a  problem  the  business  is  facing  ( i.e.,  theft).  For  job  performance,  possible  criteria  can  include  physical  agility   or  strength  requirements  (related  to  safety  or  actual  ability)  or  certain  types  of  education  or  certification  (related  to  actual  requirements) .  Job  relatedness,  as   applied  to  hiring  criteria,  is  relaxed  with  some  jobs,  particularly  where  public  safety  is  at  issue   Affirmative  Action   •   Equal  opportunity  policies/procedures  giving  special  consideration  to  members  of  protected  classes  in  order  to  overcome  prese nt  effects  of  past  discrimination.   Title  VII  does  not  require  or  prohibit  affirmative  action   •   Must:  remedy  past  discrimination,  not  use  quotas  (can  set  goals  to  which  to  aspire) ,  not  unnecessarily  restrict  rights  of  non-­‐members  of  the  protected  class  (avoid   reverse  discrimination),  and  be  dropped  as  soon  as  past  discrimination  remedied .   Baptist  male  applying  for  a  pilot  position  (the  employment  is  open  only  to  Muslims)   1.  Is  the  plaintiff  charging  disparate  impact  or  disparate  treatment?   Disparate  treatment.   2.  What  type  of  discrimination  is  the  plaintiff  is  alleging,  under  what  law?   Religious  discrimination  under  Title  VII.   3.  What  would  he  have  to  show?  He  was  a  member  of  a  protected  class  (religious  affiliation  of  Baptist).  He  was  qualified  and  applied  for  the  job  of  helicopt er  pilot.  Although   he  was  initially  given  the  job,  he  was  terminated  from  the  job  because  of  his  religi ous  affiliation.  Adverse  employment  action  based  on  the  company  not  accommodate  him   and  find  him  another  job.   4.  What  defense  does  defendant  have?  BFOQ  (must  be  a  Muslim  b/c  it’s  a  violation  of  the  Saudi  law  and  would  endanger  the  pilot  AND  we  tried  to  acc ommodate).   Plaintiff,  Black  Male  (ex.felony)  not  hired  as  a  truck  driver   1.  Disparate  Impact  or  Disparate  Treatment?  Disparate  impact.   2.  What  type  of  discrimination  is  the  plaintif f  is  alleging,  under  what  law?  Race  discrimination  under  Title  VII.   3.  What  would  he  have  to  show?  Proportionally  more  minorities  are  ex-­‐felons,  and  therefore  the  policy  of  not  hiring  ex-­‐felons  had  a  disparate  impact  on  minorities.     4.  What  defense  does  defendant  have?  Business  necessity  (prevention  of  employee  theft)  or  statisti cs  showing  that  there  is  not  a  disproportionate  number  of  minorities  who   are  ex-­‐felons.   Plaintiff,  40-­‐year-­‐old  with  experience  was  declined  over  28-­‐year-­‐old  grad  with  no  experience   1.  Disparate  Impact  or  Disparate  Treatment?  Disparate  treatment.   2.  What  type  of  discrimination  is  the  plaintiff  is  alleging,  under  what  law?  Age  discrimination  under  the  ADEA   3.  What  would  he  have  to  show?  He  was  a  member  of  a  protected  class  (40  or  older).  He  was  qualified  and  applied  for  the  job.  He  was  not  hired  BECAUSE  of  hi s  age.   Defendant  hired  someone  substantially  younger  who  was  equally  or  less  qualified.   4.  What  defense  does  defendant  have?  They  had  non-­‐discriminatory  reasons  (NOT  based  on  age)  for  not  hiring  plaintiff.   Jewish  applicant  was  rejected  from  a  Christian  adoption  agency  for  not  being  Christian   1.  Disparate  Impact  or  Disparate  Treatment?  Disparate  treatment.   2.  What  type  of  discrimination  is  the  plaintiff  is  alleging,  under  what  law?   Religious  discrimination  under  Title  VII.   3.  What  would  he  have  to  show?  She  was  a  member  of  a  protected  class  (Jewish  religious  affiliation).  She  was  qualified  and  applied  for  a  position  as  a  senior  ad option  agent.   She  was  not  hired.  The  agency  continued  their  search  and  filled  the  position  with  less/equally  qualified  non -­‐Jewish  candidate.   4.  What  defense  does  defendant  have?  BFOQ  to  be  a  Christian.   Plaintiff  applied  for  the  job  of  switchman  was  den ied  by  defendant  phone  company,  women  were  not  qualified  (lifting  objects  between  30  and  40  pounds)   1.  Disparate  Impact  or  Disparate  Treatment?  Disparate  treatment.   2.  What  type  of  discrimination  is  the  plaintiff  is  alleging,  under  what  law?     Gender  discrimination  under  Title  VII.   3.  What  would  he  have  to  show?  She  was  a  member  of  a  protected  class  (gender-­‐female).  She  was  qualified  and  applied  for  the  position.  She  was  not  hired.  The  agency   continued  their  search  and  filled  the  position  with  less/equally  qualified  male  candidate.   4.  What  defense  does  defendant  have?  The  specific  “strenuous  activity”  law  and  BFOQ  to  be  male  (would  require   proof  that  women  were  not  able  to  occasionally  lift  30 -­‐40   pounds)   Plaintiffs,  men;  were  not  hired,  but  women  were  hired  for  the  waiter  position   1.  Disparate  Impact  or  Disparate  Treatment?  Disparate  treatment.   2.  What  type  of  discrimination  is  the  plaintiff  is  alleging,  under  what  law?  Gender  discrimination  under  Title  VII.   3.  What  would  he  have  to  show?  They  were  members  of  a  protected  class  (gender -­‐male).  They  were  qualified  and  applied  for  the  positions.  They  were  not  hired.  The   restaurant  continued  their  search  and  filled  the  positions  with  less/equally  qualified  female  candidates.   4.  What  defense  does  defendant  have?  Gender  (female)  was  a  BFOQ   Intellectual  Property   The  legal  rights  which  result  from  intellectual  activity  in  the  industrial,  scientific,  li terary,  and  artistic  fields.  (WIPO  IP  Handbook).  There  are  Four  Main  Types:       Patents   Theory  –  Offer  a  limited  monopoly  to  encourage  production  of  utilitarian  works,  as  long  as  “inventor”  provides  immediate  disclosure  fo r  the  ultimate  enrichment  of  the  public   domain   Source  of  Law  -­‐  Patent  Act  (federal)   Subject  Matter:  Designs,  Utilities  and  Plants   Standard  for  Protection  –  You  must  file  a  patent  application  with  the  USTOP  and  your  invention  must  be  useful,  novel,  and  non -­‐obviousness   Most  Common  Types  of  Patents   Utility  (Most  often  sought  type  of  patents )   Protect  (available  for):  machines  (concrete  things  with  parts  that  do  stuff);  manufacture  (things  made  from  raw  materials);  compositions  of  matter  (new  mix  of  substances),   and  processes/methods  (steps/acts  producing  a  result)   Protects  the  way  things  are  used  and  how  they  work/function  and  Last  for  20  years   Design   Protect  the  appearance  (shape/aesthetics)  of  manufactured  articles ,  Protect  the  way  things  look  and  feel,  can  be  issued  in  conjunction  with  a  utility  patent  and  Issued  for  14   years.   Ø   To  be  patentable,  an  invention  must  be:  Useful  (has  utilitarian  value;  rarely  an  issue) ,  Novel  (something  new,  as  compared  to  “prior  art”) ,  and  Non-­‐Obvious  (to  one   skilled  in  the  art,  as  compared  to  “prior  art”)   •   You  get  the  exclusive  right  to  make,  use,  and  sell  (i.e.,  the  monopoly)  a  utilitarian  invention  for  twenty  (20)  years  or  a  particular  design  for  fourteen  (14)  years   •   Excludes  laws  of  nature,  natural  phenomenon,  abstract  ideas   •   America  Invents  Act  (effective  3/16/2013):  change  from  first  to  invent  gets  protection  to  first  to  file  application  with  USPTO  receives  protection   •   Patent  protection  begins  on  date  of  filing,  not  issuance   nd •   After  the  20  or  14  years,  the  invention  enters  the  public  domain  (comes  “off  patent”)  and  any one  can  make,  sell,  use;  could  get  2  generation  patent   How  could  someone  infringe  on  your  patent?   Unauthorized  making,  use,  or  sale  of  patented  utility  or  design,  can  occur  even  if  product  not  in  commerce,  and  Can  occur  even  if  not  all  features/parts  of  the  product  are   copied,  unless  a  process  (all  steps  must  be  copied  to  infringe  upon  patented  process)   What  are  you  remedies?  Injunction,  Lost  profits,  and  Royalties   Trademarks   Theory  –  Provide  perpetual  protection  for  distinctive,  nonfunctional  names  and  “dress”  (colors,  symbols)  in  order  to   maintain  quality  of  information  in  the  marketplace  and   void  confusion  regarding  source  of  goods/services   Source  of  Law  –  Lanham  Act  (federal);  unfair  competition  law  (state/common  law)   Subject  Matter:  Trademarks  (distinctive  sign/indicator;  logo);  Trade  Dress  (characteristics  of  the  visual  appearance  of  a  product  or  its  packaging);   Service  Marks  (source  of   services,  not  goods);  Certification  Marks  (e.g.,  Good  Housekeeping);  Collective  Marks  (e.g.,  CPA)     Standard  for  Protection  –  Your  mark  must  be  distinctive,  have  secondary  meani ng,  be  in  use  in  commerce,  and  be  famous;  no  need  to  file/registration,  BUT  .  .  .     •   A  word,  phrase,  symbol,  and/or  design  that  identifies  and  distinguishes  the  source  of  the  goods/services  of  one  party  from  those  of  others   •   The  law  seeks  to  avoid  confusion,  so  other  cannot  use  your  marl  in  such  a  way  that  would  dilute  it     •   Examples  -­‐  McDonalds  golden  arches;  Coca -­‐Cola  logo;  AT&T  globe   Registration?  Can  register  the  mark  with  the  USPTO,  but  it  is  not  required .  Registration  has  benefits  (BK  example):  Notice  to  others  of  exclusive  ownership ,  use  the  ®  symbol,   access  to  Federal  Courts  (Lanham  Act),  and  assist  with  foreign  registration.   Distinctiveness  is  key:  Marks  must  be  sufficiently  distinctive  and  Typically  want  fanciful,  arbitrary,  suggestive,  invented  words   If  not  “distinctive,”  must  have  Secondary  Meaning:  Descriptive  terms,  geography,  personal  names  are  not  disti nct,  Such  terms  take  on  secondary  meaning  when  customers   begin  to  associate  terms  to  trademarked  items ,  and  Depends  on  advertising,  sales,  etc.   Generic  terms  are  NOT  distinctive:  Cannot  refer  to  entire  class  of  products,  a  distinctive  mark  can  become  generic  i.e.,  Kleenex,  Q-­‐Tip,  Band-­‐Aid,  Ziploc,  Escalator   How  can  someone  infringe?  Unauthorized  use  of  the  mark  and  owner  must  show  D’s  use  created  likelihood  of  confusion  about  origin  of  goods/services   Remedies:  injunction;  damages;  destruction  of  infringing  goods   Trade  Secret   Theory  –  People  need  to  be  free  to  contract  and  avoid  unfair  means  of  competition  (tell  people  stuff  without  them  using  it  to  compete   against  me)   Source  of  Law  –  Uniform  Trade  Secrets  Act  (state  statute);  common  law   Subject  Matter:  Formula,  Customer  List,  Techniques,  and  Methods/Systems   Standard  for  Protection  –  Information  must  not  be  generally  known  or  available,  creating  commercial  value  (giving  you  a  competitive  advantage)  b/c  only  you  have/know  it,   AND  owner  must  take  reasonable  steps  to  maintain  its  secrecy .   •   Information  which  creates  independent  economic  value  b/c  it  is  not  publicly  known,  which  the  owner  has  taken  reasonable  steps  to  protect   •   Customer  lists,  R&D,  pricing  information,  marketing  techniques,  production  methods;  distribution  systems .  Coke  formula  is  the  most  famous  example   •   No  registration  requirements   •   Must  be  careful  to  share  only  with  those  who  “need  to  know,”  which  is  why  you  see  confidentiality,  non -­‐disclosure,  and  non-­‐compete  agreements  for  employees   •   Misappropriation:  D  obtains  trade  secret  by  improper  means  (theft,  breach  of  agreement);  OR  D  publishes  trade  secret,  knowing  someone  else  obtained  it   improperly  and  P  can  get  an  injunction  or  damages.   Copyright   Theory  –  Offer  a  limited  monopoly  to  encourage  the  authorship  of  expressive  works   Source  of  Law  –  Copyright  Act  (federal);  common  law  (limited  b/c  preempted  by  federal  law)   Subject  Matter:  Literary,  musical,  choreographic,  dramatic,  and  artistic  works;   Limited  by  idea-­‐expression  dichotomy   Standard  for  Protection  –  Your  work  must  be  original,  authored  by  you,  and  fixed  in  a  tangible  medium   Provides  an  intangible  property  right  to  authors  or  originators  of  literary  or  artistic  productions   Must  be  original  work  of  one  of  the  following,  fixed  in  tangible  medium:  Literary  works,  Musical  works  and  accompanying  words ,  dramatic  works  and  accompanying  music,   Pantomimes  and  choreographic  works,  Pictorial,  graphic,  and  sculptural  works,  Motion  pictures  and  other  audi ovisual  works,  Sound  recordings,  and  architectural  works.   Must  be  an  expression  of  an  idea,  not  just  an  idea  itself   Can  register  with  the  U.S.  Copyright  Office,  but  not  required  b/c  protection  automatic  as  soon  as  the  work  is  created/fixed  in  a  tangible  medium   Registration  is  prima  facie  evidence  of  ownership  and  Use  of  ©  is  optional.   Copyright  Act  of  1976   •   Works  created  after  1/1/1978  automatically  given  statutory  protection  for  life  of  the  author,  plus  70  years   •   Works  by  more  than  one  author  expire  70  years  after  death  of  last  surviving  author   •   Anonymous,  pseudonymous  works,  works  for  hire  expire  95  years  from  date  of  publication  or  120  years  from  date  of  creation,  wh ichever  expires  first   •   Section  102  excludes  underlying  ideas  or  principles  (idea -­‐expression  dichotomy);  only  the  way  idea  is  expressed  is  copyrightable   •   Section  103  affords  copyright  protection  to  compilations  of  facts  ( i.e.,  databases)   Exclusive  rights  of  copyright  owners:   •   To  reproduce  the  work  in  copies  or  phonorecords  (audio  recordings);   •   To  prepare  derivative  works  based  upon  the  work;   •   To  distribute  copies  or  phonorecords  of  the  work  to  the  public  by  sale  or  other  transfer  of  ownership,  or  by   rental,  lease,  or  lending;   •   To  perform  the  work  publicly;   •   To  display  the  work  publicly;  and   •   To  perform  the  work  publicly  by  means  of  a  digital  audio  transmission,  in  the  case  of  sound  recordings   How  does  one  infringe  and  what  do  I  get?   •   Law  prohibits  unauthorized  reproduction  of  all  or  a  substantial  portion  of  the  original  work   •   Remedies  include  damages  (limit  of  $150k/incident  under  Copyright  Act)  and  potential  criminal  charges   Fair  Use   •   In  certain  circumstances,  person/organization  can  reproduce  copyrighted  materials  without  paying  royalties  if  for  “criticism,  comment,  news  reporting,   teaching,  scholarship,  research”   •   Evaluated  based  on  (Section  107):   •   Purpose  and  character  and  use   •   Is  it  commercial  or  nonprofit/educational?   •   Not  every  commercial  use  is  unfair  (2LC)   •   Nature  of  copyrighted  work   •   Is  it  a  publicly  known,  expressive/artistic  work?   •   That’s  the  point  of  a  parody  (2LC)   •   Amount  and  substantiality  of  portion  used  in  relation  to  whole  copyrighted  work   •   Does  it  go  to  the  original’s  “heart”?   •   Even  if,  that’s  what  a  parody  does,  and  it  was  still  different  (2LC)   •   Effect  use  has  on  market  for    or  value  of  the  copyrighted  work   •   Does  it  substitute  for  the  original  or  exploit  a  derivative  market?   •   Nope  (2LC)   First  Sale  Doctrine   •   When  copyright  owner  sells/gives  away  copy  of  the  work,  owner  no  longer  controls  distribution  of  that  copy   •   Think  used  books  at  school  or  CDs/DVDs  at  a  pawn  shop   QUESTIONS   1.   If  professor  Grelecki  wrote  an  original  musical  composition  on  June  4,  2005,  which  he  hand -­‐wrote  on  a  cocktail  napkin  and  placed  in  a  Lucite  conta iner  on  his  desk.   If  he  dies  on  June  6,  2015,  when  does  copyright  protection  for  his  musical  composition  expire?   June  6,  2085   2.   True  of  False:  An  employer  would  likely  be  liable  for  injury  to  a  third  party  caused  by  an  employee  on  a  frolic,  but  likely  n ot  if  the  employee  was  on  a  detour.  False   3.   How  can  an  employer  defend  against  a  disparate  impact  claim  (2  things)?   •   Show  that  the  allegedly  discriminatory  policy  meets  a  business  necessity,  OR   •   Bring  statistics  establishing  that  the  allegedly  discriminatory  policy  does  not  have  a  discriminatory  effect  on  the  protected  class  of  which  plaintiff  is  a   member.   4.   What  must  a  plaintiff  typically  establish  when  asserting  a  disparate  impact  claim?   Defendant  has  a  facially-­‐neutral  policy,  which  when  applied,  has  a  discriminato ry  effect  on  the  protected  class  of  which  plaintiff  is  a  member.   5.   True  of  False:  If  a  land  owner  grants  a  real  estate  agent  authority  to  sell  her  property  via  written  agreement,  actual  author ity  to  perform  other  tasks  related  to  the   sale  of  the  property,  but  which  were  not  specifically  listed  in  the  agreement,  cannot  simply  be  implied  from  the  express  authority  granted  by  the  agr eement  to  sell   her  property.  False   6.   Beau  purchases  rare  coins  on  behalf  of  Amy  with  his  own  funds;  however,  Amy  refuses  reimburse  Be au  for  his  expenses  incurred  in  the  purchase  of  the  coins.  If   Beau  still  has  the  coins,  what  can  he  do  to  recover  his  expenses  (specific  remedy  available  to  agents)?   Place  an  Agent’s  Lien  on  the  coins  and  keep  them  until  Amy  reimburses  him.   7.   True  or  False:  If  a  women  experiences  discrimination  as  a  result  of  being  pregnant,  she  has  no  recourse  because  being  pregnant  does  not  qual ify  as  a  protected   class.  False   8.   To  have  a  claim  for  employment  discrimination  what  must  the  plaintiff  be  first  and  foremost?  A  member  of  a  protected  class   9.   How  can  a  company  best  prevent  the  misappropriation  of  trade  secrets  by  employees  and  former  employees?   Have  them  sign  Confidentiality,  Non-­‐Disclosure,  or  Non-­‐Compete  Agreements.   10.   True  or  False:  Individual  states  are  prohibited  from   passing  state-­‐specific  anti-­‐discrimination  laws,  if  those  laws  would  result  in  the  establishment  additional   protected  classes  beyond  those  recognized  under  the  Federal  anti -­‐discrimination  laws.  False   11.   Bill  is  employed  as  a  salesperson  at  Mary’s  used  car  lot .  All  cars  have  a  fixed  price,  which  Bill  knows.  Bill  sells  a  car  that  should  cost  $2,000  to  a  customer  for  $2,500,   picketing  $500.  What  can  Mary  do?  (A  specific  remedy  available  to  principals)?  Seek  to  recover  the  $500  from  Bill  in  an  Action  for  Secret  Pr ofits.   12.   True  or  False:  If  an  agent  fails  to  follow  the  principal’s  instructions,  resulting  in  a  loss/damages  to  the  principle,  the  ag ent  could  be  liable  for  that  loss.  True   13.   If  Professor  Grelecki  sells  his  copy  of  the  Legal  &  Ethical  Environment  of  Business  textbook,  which  he  purchased  new,  to  a  student,  what  recourse  (if  any)  does  the   publisher  have  against  Professor  Grelecki  for  this  distribution  of  the  book  (AND  why)?  Nothing,  based  on  the  First  Sale  Doctrine.   14.   Misappropriation  of  a  trade  secret  can  occur  u nder  what  circumstances  (TWO)?   •   Defendant  obtains  the  trade  secret  by  improper  means  OR   •   Defendant  received  and  disclosed  a  trade  secret  knowing  the  person  from  whom  the  information  was  obtained  actually  obtained  i t  improperly.   15.   If  another  professor  at  GSU,  in  the  music  department,  uses  Professor  Grelecki’s  musical  composition  in  class,  without  professor  Grelecki’s  permission,  as  a n   example  of  how  NOT  to  compose  music  and  Professor  Grelecki  hears  about  this  use,  what,  if  anything,  can  he  do  (AND  why)?  Nothing,  as  this  is  likely  a  fair  use.     16.   If  Colleen  leaves  her  job  voluntarily  because  her  employer  caused  her  working  conditions  to  be  so  intolerable  tha  a  reasonabl e  person  in  her  position  would  feel   compelled  to  quit,  she  would  have  to  claim  that  she  has  experie nced  what  to  show  an  adverse  employment  action?  Constructive  Discharge   17.   Besides  the  protected  class  (40+)  and  employee  requirement  (20+),  how  does  a  claim  under  the  ADEA  differ  from  a  claim  made  un der  Title  VII  with  respect  to  what   plaintiff  must  establish?   Plaintiff  must  show  that  age  discrimination  was  the  ONLY  reason  for  the  adverse  employment  action  (i.e.,  no  burden -­‐shifting  analysis)   18.   If  KSU  hires  Professor  Grelecki  to  perform  construction  work  and  Professor  Grelecki  has  his  own  LLC  through  which  he  cont racts  with  KSU,  uses  his  own  tools  to   perform  the  work,  is  given  3  weeks  to  complete  a  specific  repair  job,  and  gets  paid  a  lump  sum  upon  completion  of  that  projec t,  Professor  Grelecki  is  likely  what?   An  independent  contractor  for  KSU.   19.   If  Janet  receives  one  sexually  suggestive  email  from  her  co-­‐worker,  Phil,  can  she  immediately  claim  that  she  has  experienced  sexual  harassment  through  the   establishment  of  a  hostile  work  environment  (and  why/  why  not)?   No,  because  in  order  to  establish  a  hostile  work  environm ent,  Janet  must  show  there  was  severe  or  pervasive  (multiple  occurrences)  behavior.   20.   True  or  False:  in  order  to  be  afforded  protection  under  the  Lanham  Act,  a  trademarked  name  can  be  either:     (a)   Distinctive  (a  fanciful,  arbitrary,  suggestive,  or  invented  word) ,  OR   (b)   A  standard  term,  point  of  geography,  or  personal  name  if  it  has  taken  on  secondary  meaning .  TRUE   21.   True  or  False:  If  the  EEOC,  which  monitors  compliance  with  Title  VII,  decides  not  to  investigate  a  claim  of  discrimination,  t he  alleged  victim  of  that  lleged   discriminatory


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