Chapter 17 – Legal Guidelines and Professional Responsibilities

    Check out our Audio Lectures, Practice Tests and Study Guide for the ACE CPT to see the specific topics that make it onto the ACE CPT Test from this chapter.

     

    1. Business structure
      1. Sole proprietorships – business owned and operated by one person
        1. Minimal ongoing paperwork
      2. Partnerships – two or more agree to operate a business and share profits and losses
        1. Should have legal documents to establish rules of operation
        2. General partnerships – joining of two or more individuals to own and operate a business
          1. Minority partner – owns less of the split between partners
          2. Express partnerships – contract between the parties
          3. Implied partnership – recognized by judicial system if individuals act as partners
        3. Limited partners – only liable for their direct financial contribution
      3. Corporations – creates a separate entity from the investors and operators of a business
        1. Subchapter S-corporations
          1. Profits flow through the business to the shareholders
          2. Taxed as ordinary income
          3. Most common for personal training business that don’t operate as a sole proprietorship or partnership
          4. Shareholders are shielded from personal liability
            1. Cons: limited number of potential investors
            2. Costs of formation and operation
          5. LLC and LLP
            1. Profits flow through to investors and taxed as ordinary income
            2. Taxes easier that S-corps
              1. Cons: undefined operating standards in states
            3.  C-corps
              1. Limited liability and unlimited number of investors
                1. Cons: cost of formation and operation, double taxation
    2. Independent contractors
      1. Hired on short-term basis
    3. Employees
      1. Regularly work for their employer
    4. Contracts
      1. Offer and acceptance with a agreement of terms
      2. Consideration
      3. Legality
      4. Ability of the parties to enter into a contract with respect to legal age and mental capacity
    5. Negligence – must establish 4 elements
      1. Defendant had a duty to protect the plaintiff from injury
      2. Defendant failed to uphold the standard of care necessary to perform the duty
      3. Damage or injury to plaintiff
      4. Damage or injury caused by defendant’s breach of duty
    6. Vicarious liability
      1. Employers are responsible for the employment actions of their employees
      2. Gross negligence
        1. Recklessness or willful disregard for the safety of others
      3. Contributory negligence
        1. When client fails to notify trainer of potential hazards
        2. Prevent client from recovering any money, even if trainer is partially at fault
    7. Agreements to participate, informed consent, and waivers
      1. Agreement to participate
        1. Trainers should have a process to formally warn their clients about the potential dangers of exercise
      2. Informed consent
      3. Inherent risks
      4. Procedures
        1. Have a stand-alone document for each individual
    8. Legal responsibilities
      1. Facilities
      2. Equipment
        1. AED
      3. Supervision
      4. Instruction
    9. Scope of practice
    10. Liability insurance
      1. Employees and independent contractors
      2. Should cover personal injuries that can occur as a result of a training session
    11. Other business concerns with legal implications
      1. Marketing activities
      2. Intellectual property
      3. Transportation
      4. Financing
    12. Risk management
      1. Risk identification
      2. Risk evaluation (Table 17-2)
      3. How to approach/manage each risk
        1. Avoidance, transfer, reduction, retention, implementation, evaluation

     

     

    Check out our Audio Lectures, Practice Tests and Study Guide for the ACE CPT to see the specific topics that make it onto the ACE CPT Test from this chapter.