- - AGRICULTURAL CORE CURRICULUM - - (CLF1000) Advanced Core Cluster: AGRICULTURAL BUSINESS MANAGEMENT (CLF1750) Unit Title: AGRICULTURAL LAW ____________________________________________________________________________ (CLF1751) Topic: MAJOR FARM LAWS Time Year(s) 1 hour 3 /4 ____________________________________________________________________________ Topic Objectives: Upon completion of this lesson the student will be able to: Learning Outcome #: (P-1) - Identify major farm laws and their purposes. (P-3) - List the characteristics of liability laws as they relate to agriculture. Special Materials and Equipment: References: Luening, R. A., Klemme, R. M., Mortenson, W. P. (1991). THE FARM MANAGEMENT HANDBOOK (7th ed.). Danville, IL: Interstate Publishers. Rosenberg, H. R., & Egan, D. L. (1990). LABOR MANAGEMENT LAWS IN CALIFORNIA AGRICULTURE. Available from: Publications, Div. of Agriculture and Natural Resources, University of California, 6701 San Pablo Ave., Oakland, CA 94608-1239. (510) 642-2431. Resources: Deere & Company. (1987). FARM AND RANCH BUSINESS MANAGEMENT (2nd ed.). Available from: John Deere Technical Services, Dept. F, John Deere Rd., Moline, IL 61265. Evaluation: Quiz by instructor TOPIC PRESENTATION: MAJOR FARM LAWS A. People who work in the field of agriculture deal with many different aspects of law on a daily basis. For example, they routinely deal with a. Contract Law 1) Leases and Rental Agreements 2) Sales Contracts 3) Insurance 4) Employment and Independent Contractor Contracts b. Liability Law 1) Liability to People On and Off the Farm 2) Liability for Acts of Employees 3) Liability for the Health and Safety of Employees 4) Liability for Negligence 5) Liability for Livestock 6) Liability for Fires Caused by Negligent Operation of Farm Machinery 7) Liability for Pollution of Waterways 8) Liability for Movement of Pesticides and Other Chemicals c. Labor Management Law 1) Employment Contracts 2) Recruitment and Hiring 3) Health and Safety of Employees 4) Payroll Obligations and Fringe Benefits 5) Discipline and Discharge d. Property Law 1) Ownership of Land (various forms) 2) Liens, Easements, Encumbrances 3) Zoning 4) Water Rights/Responsibilities 5) Fence Rights/Responsibilities e. Estate Law 1) Life Estates and Trusts 2) Wills f. Tax Law 1) Tax Law in General (affects all aspects of business) 2) Proposition 13 (effect on property taxes in California) 3) Williamson Act (effect on property taxes in California) B. Sources of Law 1. Where do laws come from? There are four general sources: a. Custom - Rules that have developed over time because it is the "custom" of people to handle situations in a certain way are called "common law." Common law is not specifically written in codes of law (called "statutes") but it is nevertheless known and applied by judges and courts. Often common law becomes statutory law after a period of time. b. Lawmaking Bodies (city, state, federal) - Government bodies have authority to pass and enforce laws. These laws are written in codes and can be looked up in a library or government office. Examples of local laws are city and state laws that regulate dairy products and dairies; one example of a federal law is the Horse Protection Act which makes it illegal to use painful devices to enhance a horse's gait in the show ring. c. Administrative Rules - These are rules passed by government regulatory bodies. Examples are Internal Revenue Service interpretations of tax laws and Workers' Compensation Board interpretations of laws protecting the health and safety of employees. d. Judges - Opinions by judges stating their decisions in lawsuits are written down; these opinions are often used in future court cases by other judges who have to make decisions in similar situations. This is called establishing precedent. (However, sometimes judges do not follow precedent and rule in the opposite way; the decisions in previous cases are, nevertheless, still considered.) C. How should people in the field of agriculture deal effectively with legal matters? a. "Ignorance of the law is no excuse." It is the responsibility of anyone engaged in any kind of business to know the laws that apply to that business. If he/she does not bother to find out what the applicable laws are, he/she should be prepared to suffer the consequences...and the consequences of ignornace about the law can sometimes be very expensive. b. All legal business arrangements should be made with the guidance and counsel of an attorney familiar with the agricultural business being handled. 1) A person who acts as his/her own attorney has a fool for a client. 2) Attorneys differ in their level of competence (as do farmers and ranchers); a person should "shop" for an attorney (just as for a tractor) until he finds one he likes, who meets his needs, and whom he trusts. 3) Attorneys' fees (though expensive) are generally less than the cost of a trial or judgment by default. It is easier (and cheaper) to prevent legal problems than to deal with them after they are a disaster. c. Many farmers and ranchers have traditionally relied on an oral agreement and a handshake to "close a deal." However, it is highly recommended that all business arrangements (and especially all legal arrangements) be in writing. A written agreement is easier to deal with in the following situations: 1) If a disagreement arises and the parties remember the agreement differently, 2) If a long time passes between the original agreement and any later discussion or modification of the agreement, 3) If one of the parties to the agreement dies. ______________________________________________________________________________ NOTE TO INSTRUCTOR: Specific information about the various laws is covered in the following units; more detailed information can be found in the references and resources. ______________________________________________________________________________ 12/16/91 CH/ch #%&C