AG LAW Ag Management Ch 10 (Txt) Ch 11 (Wbk)
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AG LAWAg Management
Ch 10 (Txt)
Ch 11 (Wbk)
OBJECTIVES Explain how laws are created and where to locate them Define contract, the types of contracts and the elements of a contract Understand what kinds of contracts must be in writing Express knowledge of the statue of frauds and breach of contract Identify ways to reduce the risk of non-payment Explain leases and leasing situations Understand the importance and use of insurance Define the legal liabilities of farmers and ranchers with regard to land,
people, employees, fencing and animals Explain the use and importance of livestock pollution laws and
agricultural chemical laws Understand riparian rights Know the legal aspects of estate planning Explain property ownership Identify sources of retirement income
ASSIGNMENT
Complete the Study Guide for the following sections- Choosing Counsel #1,2,4 and Sources of Law 1-6
p. 162-163 Answers can be found on textbook pages 10-1 to 10-2
Leases & Leasing (p.165-168) 1-18 Answers can be found on textbook pages 10-6, 10-7
Livestock Pollution and Agricultural Chemical Laws and Regulations- 1,2,4,6,7,8(p.174-175) Answers can be found on textbook page 10-17
Riparian Rights 1-11 (p.175-177) Answers can be found on textbook pages 10-17, 10-18
Due– December 11 end of period.
CONTRACTS
A legally enforceable arrangement or agreement between 2 or more parties
4 elements of an enforceable contract 2 or more legal parties Offer and acceptance Sufficient consideration Public policy or morals are not offended
TYPES OF CONTRACTS
Expressed- parties state the terms of the contract orally or in writing
Inferred-the actions or conduct of the parties indicate an intention to contract
STATUTE OF FRAUDS
Law that requires certain arrangements or agreements to be in writing to be enforceable
CONTRACTS THAT MUST BE IN WRITING
Every agreement, promise or contract to pay commission for the sale of real estate
Contracts that are for more than 1 year Promises to be responsible for debt, default or misdoing of
another person Agreements, promises or undertakings made upon the
consideration of marriage, except for the mutual promises to marry
A promise of an executor or administrator to pay debts of the deceased out of their own property
Contracts for the sale of goods above a certain value unless a portion of the price is paid or part of the goods are delivered
Land Leases
BREACH OF CONTRACT
Failure to comply with the terms of a contract In the event of a contract breach the injured party
may Request completion or payment of compensation
(damages) Be entitled to specific performance of the contract Agree in advance to the amount of the damages to be
paid if the contract is breached. Request the contract be canceled and whatever has
already been provided be returned
SITUATIONS WITH A RISK OF NON-PAYMENT
Crops or livestock are delivered and sold but payment is not received
Harvested crops or livestock are contracted for later delivery
Harvested crops are delivered for storage only Because the sale of farm commodities is a
contract, in every sale there is a risk of non-payment
PACKERS & STOCKYARDS ACT
Requires livestock buyers to pay producers by the close of the next business day after delivery.
SAFEGUARDS AGAINST NON-PAYMENT
Deal only with licensed warehousemen, brokers or dealers
Don’t be deceived by the size or appearance of the company you deal with
Investigate the financial condition of the buyer before forward contracting
Demand a scale ticket marked sold or storage with each load of grain you deliver
Demand payment immediately by a check drawn on a nearby bank when the delivery is complete
Get a warehouse receipt immediately if you store crops Be on the lookout for practices that indicate financial
instability
INSURANCE FOR THE FARMER OR RANCHER
INSURANCE
Paying a professional risk taker (insurance company) a small but regular sum of money (premium) to assume the financial burden in the case of the unexpected.
USES FOR INSURANCE
Protects you and your family financially and lessens the hardship of unexpected economic loss
Meets your obligation to others who might suffer injury or loss because of something you did
Makes it possible for you to take certain risks you otherwise couldn’t take
KINDS OF INSURANCE
Life Accident & Health Property Liability
5 POINTS TO REMEMBER WHEN BUYING INSURANCE
1. Insure against those losses that may lead to financial disaster.
2. Insure the irreplaceable or most necessary property first.
3. Don’t insure anything you can easily afford to replace yourself
4. Be sure you have adequate coverage.1. Property may go up in value so coverage that was
adequate 5 years ago may not be so today.
5. Buy insurance that provides coverage for situation in which you are likely to have a claim.
LEGAL LIABILITIES OF FARMERS & RANCHERS
LEGAL LIABILITIES
Laws may affect farmers and ranchers more than they do the average citizen
Property may be seized to pay for damages Farmers and ranchers net worth is invested in
agricultural land, making them more vulnerable
NEGLIGENCE
The omission by an individual to do something which a “responsible” person would do under similar circumstances
OR Failure to use reasonable care under the
circumstances Examples- Failure to fix a hole in a barn floor, or
keeping fences in such poor repair that livestock are able to roam free
LIABILITIES WITH REGARD TO LAND
ADJACENT PROPERTY
Farmers and ranchers must exercise reasonable care to prevent injury or property damage to a neighbor
INVITEES
A person who is on your property with your consent and for your benefit or your mutual benefit Examples- A person who comes to your farm to purchase
garden vegetables or eggs or a hunter who pays a fee to hunt.
Responsibilities to an Invite- Warn them of known hidden dangers
If injuries are suffered from these known hidden dangers you are the liable party.
Inspect your property for hidden dangers Examples of Invitees
Salesmen, Postman, repairmen, independent contractors and their employees, prospective buyers
Social guest are not considered invitees
LICENSEES
Someone who comes onto your land solely for their own pleasure, benefit or convenience
Responsibilities to a licensee Warn them of any known hidden dangers You have no obligation to make the land safe for them
nor must you inspect the property to make it safe for them.
Examples of Licensees- Hunters who come onto the property hunt but do not pay a fee.
TRESPASSERS
Someone who is neither invited nor desired on your land
You are only liable for injuries to a trespasser if you personally inflict them
You may use reasonable force to remove a trespasser but not deadly force
Deadly force may only be used to remove a trespasser if your life or the lives of your family are being threatened
DOCTRINE OF ATTRACTIVE NUISANCE
If you negligently keep an object or condition on your property that is attractive to children and dangerous to children you will be held liable if a child is injured by that object or condition
For this to apply The landowner must know children trespass where the
object or condition is located
LIABILITIES OF EMPLOYERS
3 LEGAL CLASSIFICATIONS OF EMPLOYEES
Employees Agents Independent Contractors
EMPLOYEE
A person who is directed and task are controlled by another person Example- A general farmhand with little training whose
work is supervised by the farmer is an employee. Employers have the greatest amount of control over
an employee and also the greatest liability for their actions
LAWS THAT APPLY TO AG LABOR
Fair Labor Standards Act Migrant and Seasonal Agricultural Worker
Protection Act Immigration Reform and Control Act Occupational Safety and Health Act (OSHA)
RESPONSIBILITIES OF EMPLOYERS TO EMPLOYEES
Provide a safe place to work Provide reasonably safe tools, machinery and
equipment Warn and instruct of dangers that the employee
couldn’t reasonably be expected the discover Provide competent fellow employees Make reasonable rules for conduct of the employee
while at work
WORKERS COMPENSATION
Agricultural employees are exempt from this in most states
This is due to workers compensation automatically making the employer liable for injuries to employees suffered in the course of employment weather the employer was negligent or not.
Farm and ranch employers may elect to come under worker’s compensation statutes by purchasing a standard worker’s compensation insurance policy
AGENTS
Have the authority to transact business or manage the affairs of the employer
Employers are responsible for the agents acts while the employee is doing your work
INDEPENDENT CONTRACTOR
Person or organization performing a job without control from an employer
Cases where employers are responsible for the negligent acts of independent contractors Negligence in selecting a competent contractor Furnishing a contractor with faulty plans or
specifications Interfering with a contractor Hiring an independent contractor to perform a task
which is inherently dangerous Example: Aerial application of pesticides.
LIABILITIES WITH REGARD TO FENCING ANIMALS
LAWS REGARDING FENCING X
No stipulations made for materials used on inside fences
Boundary fence laws vary state to state but most require the following Fences must be tight enough to turn livestock Divisions fences between property are paid for by each
property owner. The half paid for by each owner is usually the half on their right-hand side as they stand looking at the fence division line from their own property.
State laws regarding fences should be checked first because most states have their own definition of a legally recognized fence.
http://pubstorage.sdstate.edu/AgBio_Publications/articles/ExEx5076.pdf
COMMON LAWS REGARDING THE USE OF LIVESTOCK FENCES
Livestock owners who maintain good fences are not liable for damages caused by livestock In this case the owner must not be aware that the
livestock are in the habit of breaking out and must make an immediate attempt to retake them when they do break out
When animal’s break through an adjoining owner’s part of a division fence, and the fence is not in good repair or is not legally sufficient, the owner of the animals cannot be held liable for their trespass.
OWNERS OF TRESPASSING ANIMALS MAY BE HELD LIABLE IF
Animal’s are in the habit of breaking out, regardless of the condition of the fence
Fences are defective or insufficient Negligence, such as leaving the gate open, causes
the trespass Animals being driven along the road get out of
control and enter adjoining fields, even though the road is not fenced
Owners that are negligent in maintaining their fences are held liable for all damages their livestock cause
LAWS IN REGARD TO STRAYS
Landowners or local authorities may confine strays and care for them
A reasonable attempt must be made to locate the owners
Finder is entitled to make reasonable use of the strays while they are in their custody
When the owner comes for strays, the owner must pay the finder for feed, housing, care and other costs
UNCLAIMED STRAYS
The strays become the property of the finder The strays are sold at public auction and a
reimbursement is made to the finder for expenses and the balance is put into county funds
PEOPLE INJURED BY ANIMALS
Animal owners are held liable for injuries caused by animals in the following cases
The owner negligently allows or causes the animal to commit injury
The owner is aware that the animal is vicious and the animal inflicts injury upon someone who is not acting negligently
*Examples: Biting dogs, wild animals kept as pets, or any animal capable of inflicting injury that has a known and vicious nature
ANIMAL DISEASES
Regulatory control groups help stop the spread of disease under the supervision of federal and organizations
State veterinarians direct the livestock sanitary and regulatory programs
BRANDING AND INSPECTION
Brands are used to identify ownership of animals Branding helps reduce livestock thefts SD has an ownership inspection area and State
Brand Board that regulates Brand Inspections and Rules
PROPERTY
TWO TYPES OF PROPERTY
Real Land and permanent improvements on the land
Personal Moveable items such as livestock, machinery, bank
accounts, bonds, stock
METHODS OF OWNING REAL PROPERTY
Fee Simple Co-ownership Tenancy in common Joint-Tenancy Tenancy by entirety Life Estate (Life Tenant)
DEEDS
Documents that show what real property is owned, who owns it and what method of ownership they have
Two types Warranty Quit Claim
WARRANTY DEED
Implies at time of delivery of the deed that The seller owns the property free and clear of legal
claims such as liens and mortgages, except those claims specifically mentioned in the deed
Seller has the right to transfer the property Buyer will have quiet and peaceable possession Seller will defend the title if anyone lawfully
challenges its legality
QUIT CLAIM DEED
Imply that The seller is only conveying the seller’s rights in the
property Seller does not promise he/she owns anything Often used to clear titles of property
TRANSFERRING LEGAL PROPERTY OWNERSHIP
Wills Laws of Descent Contracts Gifts
RETIREMENT
BEST RETIREMENT PLAN
Have several sources of retirement income
SOURCES OF RETIREMENT INCOME Savings Employer-sponsored pension
plans Tax sheltered retirement plans Keogh Plan (HR-10) Simplified Employee Pension
Plan (SEP) Qualified Retirement Plan
(QRP) Annuity Trusts Life Insurance Social Security
Continue to operate the farm/ranch
Rental or lease of property
Sale of Farm/ranch US Savings Bond Commercial Stocks and
Bonds US Treasury Bills Nonfarm Investments School Bonds Municipal bonds
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