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Test 3 Study Guide
Dr. Charles Miller
October 19, 2015 – Chapter 12
∙ Business Organizations and Entity Selections – Which format of business should I choose to set up?
∙ Pg. 309 Sole Proprietor – Simplest way to do business
o You are the sole owner of the business
o Assumed Name Certificate – Not the legal name of the business but the name that you can call your business and the name everyone knows your business by.
o You take all the benefits, risks, profits, losses, etc.
Food services, floral shops, and delivery trucks are all risky
o Respondeat Superior – People in an employer-employee relationship… Employee causes some harm to someone, but the employer responds to the problem or the employer is the one who is sued.
o Sole Proprietor is best when you are running a very safe business without much risk
∙ Partnerships – Two or more principle owners
o ***Pick a good partner!
People with complementing skill sets can usually be the best fit o Advantages: The partnership is a separate entity from each other. Risk is shared If you want to learn more check out tcu mgt
At its strongest when partners can collectively come to the same decision
o Each partner gets a portion and equal share and say so in the company unless otherwise stated in the agreement
o Uniform Partnership Act – Lets you know how to create a formal document for a partnership. We also discuss several other topics like tctc password reset
o Partners can have multiple positions in the company so they could be a partner and also the manager.
o Bad thing about a partnership
When partners don’t follow fiduciary duty, and they aren’t fair or honest with each other, etc.
LOYALTY. Always a concern about the partner not being loyal to you or the company.
We also discuss several other topics like senerate
Pg. 311 Zhou v. Bickley – Can’t separate and carry on making a new business directly rivaling old business Don't forget about the age old question of soup world potsdam
∙ Bickley and Zhou signed a lease on a building together
and Bickley opened up a motorcycle repair shop, and
when Zhou asked for keys to the building or receipts or a
written agreement for the money Zhou lent Bickley,
Bickley refused to give it to him claiming they were
breaching the contract they had entered with each other
by demanding their money back that they had given
∙ Bickley lost the case because they were never in a real
partnership because they didn’t go through the proper
steps necessary. Instead, Bickley was operating under a
sole proprietorship and Zhou was just an investor. Zhou
won the case.
o Limited Partnership – Have several partners where one or two people are in charge while the rest of the partners have limited partnership. Limited partnership typically only puts in money and isn’t involved any other way
Limited partners only lose the money that they put into the deal. If the company sufers losses or lawsuits, the limited partner is only liable up to what they put into the company
How many general partners do you have to have in a limited partnership, and how many limited partners do you have to
∙ At least one general partner and at least one limited
partner, so there is always someone who can take the
∙ Pg. 316 Corporation – The business is a separate entity We also discuss several other topics like psyc 1000 midterm
o The entity shields the individuals from liability
o Have to file paperwork and state your desire to be a corporation File a certificate of incorporation Exhibit 12.2
∙ Have a name of the corporation and include “corp.” or
“inc.” at the end of your name
∙ Have to say where the registered office is that made you
∙ Have to have a Registered agent who is someone who
receives the lawsuit on behalf of the corporation
∙ Have to put the purpose of the corporation
∙ Have to have shares of stock (ownership and equity)
o Minimum of one share and one shareholder
o Shareholders own the business
Problem: There can be an unlimited number of shareholders Shareholders elect representatives to sit on the board of
directors (usually 3-30 people) who then decide who to hire as employees
∙ Shareholders Board of Directors Employees
∙ People can wear multiple hats, so employees could
become shareholders if they wanted, which gives them
more invested interest in their own company, and it’ll
make them work harder
Inside Directors can be people tied up in the company
Outside Directors are those sit on the board and give opinions and help make decisions but don’t actually work for the We also discuss several other topics like artemis rape
October 21, 2015 – Chapter 12
∙ Pg. 326 Exhibit 12.3 Compares major forms of business organizations o Proprietorship, partnership, corporation, and limited liability company ∙ Pg. 318 Business Judgment Rule – This makes the directors and managers of a business immune from liability when problems result from their honest mistakes in judgment.
o In other words, they can’t be sued for making a bad business decision for the company
∙ Fiduciary Duty of Loyalty – Directors must be loyal to the company and put its interests over their own.
∙ Pg. 320 Managers are typically the only employees who have written contracts.
o Why single these people out?
These are the people who add value to the companies, so
companies want to keep them on board.
∙ Types of Corporations
o Closed Corps – Owned by only a handful of people; private, so you cannot buy stock
Usually below 35 members
o S Corps – Typically corporations pay tax on their income and then when they pay dividends to shareholders, the shareholders are taxed for their personal income too. Essentially, so double taxation occurs. BUT S Corps DON’T have corporation income tax.
They also ofer only one type of stock and usually have less than 100 shareholders
o Professional Corps (PCs) – Corporations made up of a group of people in a certain profession such as a bunch of doctors getting together or lawyers, etc.
o Pg. 322 Limited Liability Corps (LLCs) – A combination of partnerships and a corporation; no shareholders, only members; taxed only on owners, not on the company; personal liability is avoided as well.
Need a FEIN, or an operating agreement, and they can last as long as they are successful
∙ Pg. 329 Franchise – A business model, not a corporation
o Any business can be a franchisee
o All of it is written in a franchise agreement
o The Franchisor is concerned that the new buildings are run properly and make profits
o The Franchisee has to decide whether or not it will be good for them to become a franchise
o Scams – People have pretended to sell a business model to someone who wants to be a franchisee then once they pay the fee to become a
franchisee, they realize that the business model does not even exist or is not successful at all
o Types of Franchises
1) Product Distribution – Franchisee has the right to sell the
product of the parent company
∙ Ex: Those little car dealerships you find on the street
corner selling all sorts of diferent brands of cars even
though they don’t work for any of those car companies
2) Business Franchise – Must pay a fee to be a franchisee, then you usually get a geographical area to maintain, and you must
do it how the franchisor tells you to do it. Just like opening up
and running several Applebee’s in the El Paso / West Texas area 3) Trademark / Tradename Licensing – The franchisee has license to market the company’s brands
∙ Ex: They can advertise for Coca-Cola all around their store
∙ Summary on Page 334 is very good…highly recommend!!!
October 23, 2015 – Chapter 13
∙ Pg. 339 Negotiable Instruments – Function as a substitute of cash like a check o Uniform Commercial Code (UCC) defines what quantifies as a negotiable instrument
o Checks: the drawer writes the check and the drawee is the bank. The payee receives the check
o Cashier’s Check – guarantees that the bank has the money written on the check so the payee is assured that the drawer has all the funds, and the check definitely will not bounce
o Pg. 344 Promissory Notes – A promise to pay later. It buys time for the person to pay at a future date.
Also pay interest rates when you write a promissory note; if you don’t pay any of your payments on the designated date, the rest of the debt becomes due immediately
Prepayment without penalty clause – If you pay of your debt early, you have to still pay the initial interest that was expected Promissory Notes are good because they are in writing, so it’s proof if the person does not pay.
o Pg. 345 Certificate of Deposit (CD) – Customer deposits money in the bank and the bank promises to pay the customer interest on this money
The bank then takes this money and loans it out to other people and charges them an even higher interest than what they are
paying the original depositor. That way the bank makes some
money out of it.
It’s a very safe deposit but the only risk is that you can’t get that money back early unless you give up all of the interest the bank was going to pay you.
October 26, 2015
∙ Check the post on Franchises on Blackboard
∙ Pg. 348 Security Agreements
o Secure Debt – Has collateral attached to it so if they don’t pay the debt, they can ofer up some other of their assets to pay for their debt o Unsecure Debt – Someone owes you money but you don’t have anything to cash in on (no collateral) if they don’t pay you
∙ He said to focus on all vocabulary between pages 351-353 in the book because he is too lazy to explain it and apparently the book does a better job than he does. So here are the straight definitions of those terms
o Secured Transaction – If a buyer buys goods but does not pay with cash, the goods the buyer receives acts as an obligation to pay the seller in the future, so the transaction is secured for the seller.
o Perfection of Security Interest – When a seller gets a claim to take back goods he sells in case the buyer does not pay
o Attachment – when the customer signs an agreement to assure the seller security interest
o Perfection – Establishes the date that the perfection of security interest goes into efect giving that person priority over other people that the borrower owes money to
o Tangible Property – Goods that are movable at the time a security interest attaches or begins
o Purchase Money security Interest – Something the lender obtains against the seller that gives the lender rights that are superior to other creditors in the event the borrower fails to meet debt obligations
o Floating Lien – The security interest in any specific item of inventory ends when the item is sold, but the interest attaches to new inventory o Defaults – Borrower cannot or will not meet payment obligations ∙ Pg. 354 Real Estate Financing
o Mortgage – A loan from somebody to buy a house
If you don’t pay it back with interest, your house can be taken away from you by the people you owe money to (most likely the bank)
∙ Pg. 355 Lien – A security that is obtained by a creditor (lender) through law o Liens protect people who provide labor and services on real estate without getting paid until they are done with the project. These services make improvements on the property
Ex: If you have X amount of time to pay the worker and don’t do it, he can file a mechanic’s lien on the property, not on the
owner of the property. The worker can then foreclose on the lien and get the money owed to him.
o Pg. 357 Possessory Lien – A person does repairs and has a receipt showing that repairs were done, but then the person doesn’t pay. The worker can hold the property in his possession until the person pays. After a certain time, if he doesn’t pay, the worker can advertise the sale of the item and sell it once the lien becomes official
o Judgment Lien – Once you file for a lien and receive proper judgment to sell the property, you have the responsibility of letting potential buyer’s know that you are buying this on a lien.
∙ Garnishment – If a person owes you money and won’t pay, you can go to court to get garnishment
o The court can require the debtor’s work to take of the amount owed to you from the debtor’s next paycheck, up to 28% of that person’s wages. If the company doesn’t agree to do that, the company will have to pay you themselves.
∙ Pg. 357 Bankruptcy (controlled by federal law)
o People file for bankruptcy because they become insolvent and can’t pay of their debts
o Most often comes due to housing or medical bills
o Pg. 358 Personal bankruptcy – In Chapter 13 of the bankruptcy code that states certain requirements you must meet before you are eligible to file for bankruptcy
Ex: income and means test – must make below a certain amount of money
o Voluntary Bankruptcy – Lists a petition that tells everyone exactly your true financial status of what you owe and how much you have. Embarrassing to state all of your debt sometimes.
o Once paperwork for bankruptcy is filed, it goes to a trustee who checks to make sure all the information is correct and qualifies you for bankruptcy
o Goal of bankruptcy is to get a fresh start with no debt
o Debts that can’t be discharged (forgiven) when filing for bankruptcy is listed on page 361
Main things are child support, back taxes, and student loans o Chapter 11 of the Bankruptcy code discusses restructuring a company and reordering debt to prevent the company from closing down completely
Ex: Barnes and Noble was doing poor in 87 of its 200 stores. So they reorganized the debt onto the other stores who could pay it and shut down the 87 stores that were failing.
Ex: American Airlines filed for bankruptcy because they struck deals with tons of diferent labor unions and realized they
couldn’t pay for all of the deals they agreed to.
∙ Under Chapter 11 of the Bankruptcy code though, they
were able to take this issue to court, and the court had
the ability to reject union contracts and renegotiate them
so American Airlines wouldn’t sufer from bankruptcy.
October 28, 2015 – Chapter 14 Employment Relationships
∙ Agency Relationship – The principal hires an agent to interact with a third party on behalf of the principal. As to what extent of what the agent has power to do depends on the type of agency agreed upon with the principal.
∙ People become agents through official documentation called power of attorney contracts.
∙ Types of Agents
o 1) pg. 376 Universal Agents – This agent can do all acts that are legally granted to agents. Universal agents have a broader range of power than any other agents.
o 2) General Agents – They can execute all transactions on behalf of a business, but not an individual
Their responsibilities could be limited though if it is mentioned in the contract.
∙ Implied or Express Ratification – When an agent does something beyond his/her power, but you give a verbal okay, the agent’s action is implied to be acceptable.
∙ Agency by Estoppel – When no formal agent exists but a person is acting on all cylinders like an agent. Basically there is no official contract making that person an agent.
∙ Agency by Operation of Law – Someone becomes an agent to act on another’s behalf when an emergency exists
o Ex: having medical power of attorney
∙ Acts for the Principal
o Actual Authority – When you sign a power of attorney contract, you give the power of actual authority. Basically actual authority gives the right of action from the principal to the agent.
o Apparent authority – You don’t need to show the third party official documentation that you are an agent and can act on behalf of the principal. When the agent shows up and just starts to act as if he is making decisions for the principal, it is implied that this agent has apparent authority.
∙ Pg. 380 Principal Duty to an Agent
o Duty to Indemnify – The principal is responsible for damages the agent sufers if the agent was operating under the agreed terms
∙ Agent’s Duties to a Principal
o Fiduciary Duty to a principal- The agent is responsible for acting loyally and putting an honest efort into the job required of him/her.
∙ Termination of an Agent is simply done in writing.
∙ Pg. 385 Employment Relationship – Master over Servant
o The master is the employer and the servant is the employee. o The master is responsible for acts of the employees that fall under their scope of business
o Pg. 393 Tort Liability – Respondeat Superior
The master is indirectly/vicariously responsible for actions of servant
Ex: John Hopkins hospital had an employee who delivered babies. Over 12 years, he was secretly taking video through a pen in his shirt pocket. He got caught, and John Hopkins Hospital put $190mil aside to give to woman who filed suit and were
videoed because they were responsible for the employee’s
actions via respondeat superior
o Diference between an independent contractor and an employee (servant)
Independent contractors are not servants because their actions aren’t controlled by the master.
∙ Servants on the other hand are hired to follow the orders
of the company and the master
Independent Contractors on the other hand are given a task to do by the master, but they can complete the task as they
Companies like independent contractors because they don’t have to pay taxes on their wages, and they don’t have to pay for their employee rights.
October 30, 2015
∙ Date for the makeup test is December 9
∙ Review of Respondeat Superior – When an employee does something outside the scope of the company, the company cannot be sued
o Armstrong v. Food Lion – Pg. 395
A Food Lion employee is on break and walks out into the parking lot only to see Armstrong, someone he has a personal grudge
against, and Armstrong’s mother. The employee beat the crap
out of Armstrong, so Armstrong sued Food Lion.
Food Lion argues that the employees were not doing business on behalf of the company. They were on break and not performing Food Lion services.
Respondeat Superior protects Food Lion from this law suit
o Pg. 396 Cases - ***Be able to compare and contrast these cases with the Armstrong case
Confused because there are no cases on page 396…
Distinguishable case – When a prior case is deemed to be
diferent from a current case so the decision from that case
cannot apply to the current case at hand.
Negligent Hiring – When torts are committed by an employee who is not acting in the scope of employment
Is a servant within his scope of employment when he beats up the third party and commits a tort?
∙ Ex: Susy steals a company car and wrecks it; is the
∙ No because these employees (servants) are not acting in
their scope of employment.
o Master is not responsible for an independent contractor
Ways to determine the diference of independent contractor vs. employee
∙ Control Test – If the master can control how the individual
does the work, the person is then an employee
∙ The more control a master has, the more likely it is the
person is an employee
∙ Ex: A master spends $100 on an independent contractor
when his work earns him $100. When an employee’s work
earns him $100, it costs the servant $107.65 because of
the income and Medicare matching taxes the company
has to pay.
∙ Independent contractors usually charge more than what it would cost an employee because they have to pay the
income and Medicare tax for themselves and the tax the
company would have to pay if they were an employee, so
they are double taxed.
∙ Pg. 391 Employee Handbooks – Has lots of disclaimers to say that people are not employees
∙ Pg. 388 Employment at will – when you are an employee, your job is never permanent. You can be fired at any point in time for no reason at all should the master choose.
∙ When you are a master who sings a lease or signs anything for a company, sign your name with your title of position in the company so the contractor knows you are signing on behalf of the company and the company will pay what is due.
o If you don’t sign with your title, the contractor can put together a case that says you were expected to pay what was due yourself.
∙ Chapter 15 Employment and Labor Regulations
∙ Public Policy for employers at will
o Employees can be fired for any reason at all
o Pg. 402 Exceptions to people being able to be fired for any reason at all Unlawful Act – When you refuse to do something the company asks you to do because it is illegal, and the company fires you, you can sue for unlawful firing
∙ Ex: Guy works on a boat in Corpus Christi, and his
employer tells him to dump illegally. He says no and is
fired. He sues the boat company and wins on wrongful
Performing a Public Duty – If you are assigned to jury duty or military service, and you miss work, you can’t be punished for that
Whistleblower – Someone who tells the government about the unlawful actions a company is taking
∙ The government encourages this by employees by
ofering them about 20% of what the government gets
back by convicting the company
∙ Pg. 404 Non-Compete Clause
o Given to high up employers with critical information regarding their company
o It prevents them from going to another competing company and working after they leave for a certain amount of time
∙ Anti-Raiding Covenants
o You are not allowed to leave a company and start recruiting your other colleagues to come with you and work for a competing business ∙ Substance Abuse – Ridiculously costly for companies
o Estimated $250 billion annually for companies and $150 billion for employees
o These numbers are what it costs companies and employees respectively for getting in trouble with drugs and alcohol
November 2, 2015
∙ Read Amazon Case on Blackboard
∙ Pg. 406 Substance Abuse Testing
o Pre-employment testing – testing someone for drugs before they are hired
What if medications or second-hand smoke causes a test to be positive? No answer, just a question to ponder…
People argue this test is an invasion of privacy
∙ Pg. 408 Worker Health & Safety
o Government passed the Occupational Safety and Health Act (OSHA) Were able to do this using the interstate commerce clause
OSHA passes regulations about workplace safety
They can inspect businesses and fine them for not following the laws
∙ If someone is injured on the job, they need to be paid
while they are out
∙ Pg. 412 – You must prove the injury happened at work
o Are carpel tunnel, diabetes, or a car accident while
you were on a work trip but taking a detour to visit
a friend covered by worker compensation? More for
us to ponder.
∙ FMLA – If you work for the government or for a business
with over 50 people, you get the right to leave from your
job and come back if it is for a reasonable cause
o Ex: giving birth to a child
∙ Pg. 417 General Regulation of Labor Markets
o People must prove citizenship or have an I9 if they are an immigrant to work
o If the company hires you but can’t prove you are allowed to be working, they have to pay a big fine.
∙ Pg. 418 Minimum Wage and Tax requirements
o FLSA – Fair Labor Standards Act sets the wage at $7.25
o Why is a minimum wage good? It puts money in people’s pockets to spend in the economy
∙ Occupational Licensor – You have to have a license to work certain jobs o Ex: lawyers, doctors, etc must have a license to practice
∙ Companies must give their employers sufficient notice when they are going to make job cuts or close the business
o Called the WARN notification act.
∙ Retirement Plans – Employee Retirement Income Security Act (ERISA)
o 1) Define Benefit Plan – You can take money out of your check and put it in your retirement fund, and they company will put a certain amount in there as well based on your salary and length of service with that company
o 2) Define Contribution Plan (most common) – You can have the company take money out of your check and put it in your 401k, and they will match that amount up to a certain point
∙ Severance Plans (When you get fired)
o It determines how much and how long you are paid after getting fired o It’s a formula that each company derives
o Why would they want to do this?
Because you sign papers when you receive a severance plan that prevents you from suing the company
o You can choose to deny the severance plan and not take any money from them.
November 4, 2015
∙ Pg. 422 Labor Organizations (Unions) – All in the private sector o Labor vs. Capital; employees vs. employers
o Employees get together to form unions to negotiate better wages and benefits with their employers
o The best weapon the employees have if the employers don’t listen is to start a strike
o Norris La Guardia Act 1932 – It prevents employers from issuing injunctions with the courts regarding unions
In other words, they can’t refrain their employees from
participating in a union
This Act banned Yellow Dog Contracts, which said you could not participate in a union.
o Pg. 425 National Labor Relations Act – These are the laws employees must follow to form labor organizations
Led to the formation of the National Labor Relations Board
(NLRB) – These people are the organizers and leaders of unions
∙ NLRB act as the referees in the negotiations between
employers and employees in case of penalties, which are
called unfair labor practices
Employees get authorized cards when they agree to join a union, and the labor organization becomes official when 51% of the
employees an authorized card
Representative Election – When the company thinks that the labor organization is a scam and less than 51% of the employees really wanted to join, the company can call for a vote so the
employees can determine if 51% or greater really do want to
join a union. If yes, the NLRB will represent them
o 14% of the workforce are currently in labor organizations
o Pg. 428 Collective Bargaining – When the union and employer negotiate for a new deal
o What if you can’t bargain a deal? You go on strike
What do employers do when you go on strike?
∙ They hire replacement workers
∙ They could also lock out the employees and shut down
o Pg. 430 Boycott – We all know that means just to refrain from doing something, which is what some unions choose to do.
Secondary Boycotting is when you convince another company to stop doing business for the company they are striking against ∙ Good Cause – When an employer disciplines an employee, there must be good cause behind it. If the employee doesn’t think he/she did anything wrong, an arbitrator can come in and make the decision
∙ Chapter 16 Employment Discrimination
o What is discrimination?
Can often be used as a positive term. It’s simply choosing one thing over all of the other things.
o The Civil Rights Act of the 1960s actually discusses employment discrimination in Title 7
Pg. 437 The most common discriminations are:
Race, color of skin, nationality (place of birth), Religion, and gender
Federal government can enforce this act via the Interstate Commerce Clause
It only qualifies for companies over 15 people unless state law says otherwise (California law says this law applies to all
companies with at least 1 employee)
∙ Pg. 440 Sexual Harassment – Unwelcome sexual
advances, requests for sexual favors, and other verbal or
physical conducts of a sexual nature
o 1. Quid Pro Quo “This for that”
Do these sexual acts with a boss in order to
keep a job or avoid punishment
The only evidence is typically he said, she
said; one person’s word against another’s.
If employees quit then file a charge for
sexual discrimination, the company can still
be at risk because she was forced to quit on
Yahoo case he gave us. It’s really just trying
to find proof of whose word is right.
o 2. Hostile Environment
Harris v. Forklift Systems
∙ The boss called Harris dumb and said
her job as a rental manager should be
done by a man because they are
smarter. He told her to negotiate her
contract with him at a Holiday Inn. He
threw coins on the ground and made
her pick them up and made sexual
comments about her clothing. She
sued him for hostile environment and
the court decided with Forklift
Systems, the defendant but it was
reversed in Harris’ favor in the
The Harris case begs the question:
∙ How many instances of crude
treatment are required to take it from
being annoying to being harassment?
How much is too much?
∙ The answer to this has to lie in
providing as much detail to the case
o Pg. 439 Cyber Law
There is no right to privacy when you are on a company’s computer or server
If there are naughty jokes circulating in the office email, the employer who owns the server is responsible.
Typically harsh words or jokes aren’t enough to make someone guilty
o Equal Employment Opportunity Commission (EEOC)
Federal agencies write rules on employment discrimination, and they enforce it.
You have 180 days to file an employment discrimination cause once the event happens
The EEOC screens each employment discrimination case that comes in and decides whether or not there’s an actual cause for discrimination or not. This prevents a lot of cases from getting to the actual court to keep the amount of suits manageable.
∙ If there is cause for discrimination, you get a ticket, and once you get a ticket, you officially have the right to sue the other party within 90 days.
Good of EEOC
∙ It limits the number of people able to file for suits
Bad of EEOC
∙ The defendant’s lawyer doesn’t like it when the EEOC has the power to issue a ticket because if the EEOC issues a ticket, that means they think that discrimination occurred and the court will take that into consideration when
making their decision. So it makes it harder for the
defendant to win.
o Pg. 445 Disparate Treatment Exhibit 16.2– A way to prove employment discrimination when an employer does not act the same from one employment to the next
Must pass the McDonnell-Douglas Test
∙ 1. Plaintif must belong to a certain class (i.e. black, Jew, etc)
∙ 2. The employee must be meeting all job requirements ∙ 3. The employee must have been mistreated in some way (disparate impact)
∙ 4. This treatment was due to discrimination
∙ THEN the employer must prove that his/her decision was fair and nondiscriminatory
∙ THEN the plaintif must rebut that and prove how it was discriminatory
o Business Necessity – Are the qualifications posted for a certain job actually necessary for doing that job?
Ex: It is not legal to have in the job description that a qualification for a secretary position is to be able to bench press 200 pounds. That is discriminatory because that skill does not even apply to the job at hand.
o Defenses for Disparate Treatment
1) Pg. 452 Bona Fide Occupational Qualification (BFOQ) – When it’s okay to pick one type of people over another
∙ It can apply to any stereotype except race.
o Ex: It’s okay to hire only female models to model
o Ex: It’s okay to require a priest to be Catholic
before hiring him in the Catholic Church
2) Collective Bargaining Agreement (CBA) – When terms are agreed upon collectively and written in a contract, any
discriminatory act may be okay.
∙ Ex: Unions may strike an agreement with employers that say that people who have been in the company longer
deserve a higher pay than someone who just started even if they are working at a similar position.
o Because the union agreed upon it with the
employers and because it is in writing, it is fine.