The Legal Environment of Business: Text and Cases
9th Edition
ISBN: 9781305764460
Author: Frank B Cross/ Roger LeRoy Miller
Publisher: CENGAGE C
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Chapter 19, Problem 1RE
Summary Introduction
Case s ummary :Person B hired person S to assist him in selling insurance for his company MLC. B found that S was simultaneously selling the insurance of another company PLC. B withheld the client’s contact information from S and terminated the contract. S brought a suit against B for loss in sale and commissions.
To find :The principal and the agent in the given scenario.
Expert Solution
Explanation of Solution
An agent can be an independent contractor or an employee of a company. The court considers the status of a worker on the basis of the degree of control exercised by the principal over him. Less control indicates that an agent is an independent contractor while more control indicates that the agent is an employee. In the given case, B hired S for assisting him in selling insurance for his company. Therefore, B is the principal and S is the agent in the given case.
Summary Introduction
Case summary: Person B hired person S to assist him in selling insurance for his company MLC. B found that S was simultaneously selling the insurance of another company PLC. B withheld the client’s contact information from S and terminated the contract. S brought a suit against B for loss in sale and commissions.
To find: The method by which the agency relationship was formed.
Expert Solution
Explanation of Solution
An agency can be formed by voluntary consent or by agreement between the parties. In this case, the agency relationship was formed by an agreement between B and S, where B was hired to assist S in selling the life insurance for MLC.
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Ms. T who was employed with Catamaran Inc. was caught in the act of stealing the company property of her employer. When Ms. T admitted to the commission of the said act to her manager, the latter advised her to just tender her resignation; otherwise, she would face an investigation which would likely lead to the termination of her employment and the filing of criminal charges in court.
In the letter of dismissal, the employer also stated that Ms. T qualifications was not as good as those of the other employees and that when the company held a party in her honour for 20 years of service to the company, that she drank too much and had to be taken home by the company’s driver.
Acting on her manager’s advice, Ms. T submitted a letter of resignation. Later on, Ms. T filed a case for constructive dismissal against her employer. While Ms. T conceded that her manager spoke to her in a calm and unforceful manner, she claimed that her resignation was not completely voluntary because she was told…
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In the letter of dismissal, the employer also stated that Ms. T qualifications was not as good as those of the other employees and that when the company held a party in her honour for 20 years of service to the company, that she drank too much and had to be taken home by the company’s driver.
Acting on her manager’s advice, Ms. T submitted a letter of resignation. Later on, Ms. T filed a case for constructive dismissal against her employer. While Ms. T conceded that her manager spoke to her in a calm and unforceful manner, she claimed that her resignation was not completely voluntary because she was told…
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Chapter 19 Solutions
The Legal Environment of Business: Text and Cases
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