CPCU 530 3
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Define sexual harassment. What are the two types of sexual harrassment claims?
1. Quid pro quo - job admancement or security is conditioned on submission to sexual requests.
2. hostile environment - sexual conduct (jokes, ,comments, physical contact, or centerfold pinups) permeates the work environment to such an extent that it is oppressive.
What does the 1967 Age Discrimination in Employment ACT (ADEA) prohibit?
It prohibits employers from discriminating against employees over the age of 40 and prohibits mandetory retirement at any age (except for executives with pensions over $44,000 per year and tenured college proessors over age 70). An employer may establish an age limit if age is a bonofice occupational qualification resonabl necessary to the business.
Title VII of the civil rights act of 1964 prohibits what?
discriminatin by private employers and unions bassed on racve, color, religion, national origin or sex.
Employement discrimination under Title VII falls under two theories. What are the theories?
1. The diparate treatment theory - the employee must establish that the employer's acts were motivated (even in part) by the intent to discriminate.
2. The disparate impact theory - the employee must establish that apparently neutral employment practices have had a disportionate effect on a protected class.
Describe what types of contracts are voidable?
Contracts involving fraud, material misrepresentation, concealment, undue influence, or duress are voidable.
What are the three purposes of the parol evidence rule?
To carry out the parties intention.
To make contrcts certain and definite
To prevent fraud and perjury.
How does the Parol Evidence Rule impact contracts?
Once the parties have set forth the terms of the contract in writing, courts will not allow parol (prior oral) evidence that contradicts the written agreement.
What is a contract of adhesion and what is the impact on insurance contracts?
Insurance polices are contracts of adhesion since they are drafted by one party (the insurer) and presented to the other party (the insured) on a take it or leave it basis. Since the Insurer drafts the policy any way it wants, it has every chance to protect its interest. Thus reflecting their unequal barganing powers, the rules of strict construction is applied and every ambiguity is interpreted in favor of the insured.
Binders and Oral contracs for insurance must contain the essential elements of binding contracts. What are the essential elements of binding contracts?
1. Agreement - offer and acceptance
2. Contractual capacity - both insurer and the insured
3. VAluable consideration - protection and premium
4. Legal form - polices need not be in writing, although statutes dictate some standard policy forms and conditions.
5. Genuine Mutual Assent - polices founded on fraud, material misrepresentation, or concealment may be voidable.
What are representations?
Representations are statements of past or present facts mad before contract inception to induce the other party to contract or to secure more favorable contract terms.
What makes a representation material?
It is material if it influences a party's
1. willingness to contract
2. acceptance of any terms
3. willingness to accept the amount of consideration (if the underwriter would decline coverage, charge a different rate, or offer different coverage terms had they known the truth, the representation is material.
note that any material misrepresentation, even if made in good faith, makes the policy voidable, if the insurers relied on the misrepresentation.
Describe the three types of warranties.
Affirmative warranties are statements of fact at or before contract inception.
Continuing (aka promissory) warranties are agreements to continue to create conditions or situations.
Implied warranties are implied by law to make transactions resonable and fair.
What is a statement a warranty?
A statement is a warranty when
1. the parties intended it to be a warranty
2. it becomes part of the contract
When does a breach of warranty make a policy voidable?
When the misrepresentation was material.
When does misrepresentation make an insurance policy voidable?
When the misrepresentation is material.
What is a copyright?
It is an intellectual property interest that may only be obtained on an original work of authorship such as a book, music, or computer software. It is good for 50 years beyond the author's death.
What is the purpose of the copyright act of 1978?
It protects the interests of the copyright holder while permitting the fair use by others of copyrighted work for limited purposes such as teaching, research, criticism or commnent.
What does a patent do?
It protects an inventor's rights in his New, Useful, Nonobvious invention.
When does a bailment occur?
When the owner of property (a bailor) transfers possession fo the proprty to a holder (bailee) with the intention that the property will be returned.
A Gift requires three elements. What are they?
1. donative intent to make a present gift.
2. delivery (either physical or contructive transfer) and
3. acceptance by the donee.
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