Concept explainers
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.
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.
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.
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.
Want to see more full solutions like this?
Chapter 19 Solutions
Bundle: The Legal Environment Of Business: Text And Cases, 10th + Mindtap Business Law, 1 Term (6 Months) Printed Access Card
- Gert is employed as an accountant at KMG. His contract of employment states that he will be on probation for a period of six months. However, after six months, Gert is informed that his contract of employment is terminated because he failed to perform at the minimum required level for this position. 2.1. Discuss whether Gert’s dismissal was fair in these circumstances.arrow_forwardWhich of the following are required for a plaintiff to establish a prima facie case of disability discrimination? Select all that apply. 1. that her employer has 10 or more full time employees 2. that she was forced to work in a hostile work environment. 3. that she is someone who, with or without reasonable accommodation, can perform the “essential functions” of the employment position that such individual holds or desires. 4. that she is disabled 5. that she was subjected to unlawful discrimination because of her disabilityarrow_forwardUnder what circumstances should a principal (employer) be responsible for the torts committed by an agent (employee)? If an agent injures a third party during the course of employment, to what extent should the employer be held liable? Under what circumstances should the agent be held personally liable? Provide an example to illustrate your opinion. What ethical considerations underlie the doctrine of respondeat superior?arrow_forward
- Joan Leikvold was hired by Valley View Community Hospital as an operating room supervisor in 1972. She did not have a contract for a specific duration, nor was she told that the hospital would not discharge her except for cause. She was provided with a policy manual and told that the policies were to be followed in her employment relationship with the hospital. In 1978, she became the director of nursing. In October 1979, she requested a transfer back to her former position in the operating room. The chief executive officer (CEO) felt that it was inadvisable for someone who had been in a managerial position to take a subordinate position. Leikvold withdrew the transfer request but was subsequently fired. Her personnel record indicated “insubordination” as the reason for discharge. Leikvold was an at-will employee. At-will means that there is a contract made for an indefinite duration and either party, employer or employee, may terminate the contract at any time for any reason, or…arrow_forwardLend Co. discovered that one of its employees, Dana, is an alcoholic. Her manager realized that Dana's alcoholism must be the reason for her absenteeism. To help Dana overcome her alcoholiśm, the employer provided her with counseling services and also asked her to make a firm choice between treatment and discipline. Lend Co. also offered outpatient treatment, and Dana participated in the program without success. When all of these efforts failed, Lend Co. offered to provide inpatient treatment, and Dana refused. Lend Co. fired Dana. According to the courts: O A. Dana has a valid claim under the Americans with Disabilities Act because she willingly participated in the outpatient treatment, even though it did not produce positive results. O B. Lend Co. is not liable under the Americans with Disabilities Act because it offered a reasonable accommodation, and Dana refused. O C. Lend Co, is liable under the Americans with Disabilities Act because it failed to offer Dana time off from…arrow_forwardCourtney and Jonathan agreed that Jonathan would paint Courtney's home for $800 with Courtney supplying the paint. Jonathan went to Courtney's home on several occasions to do the job, but she never had the paint. Finally, he moved on to other jobs. Six months later, Courtney sued Jonathan for not painting her home. Who is likely to win and why? Include the legal term for Jonathan's offer of performance.arrow_forward
- Dr. Pooneh Hendi Glascock, a female physician of Iranian origin, entered an “Independent Contractor Physician Service Agreement” with Linn County Emergency Medicine (LCEM) in May 2007 to work as an emergency room physician at Mercy Medical Center in Iowa. The Agreement was for one year and could be renewed for an additional year unless terminated by either party with 90 days notice. LCEM provided professional liability insurance for Glascock, but no benefits or vacation pay. The agreement guaranteed Glascock 15 shifts per month at an hourly rate of $130. Glascock submitted her monthly availability and scheduling preferences to LCEM, and LCEM assigned shifts. She also remained free to engage in other professional activities. Glascock filed her own self-employment tax returns. The Agreement gave LCEM no control or direction over the method or manner by which Glascock performed her professional services and duties. As the attending physician at Mercy Medical Center, she selected a…arrow_forwardExplain the fourfold test for employment. Why did the courts find it necessary to establish this test?arrow_forwardTyrone, a U.S. citizen, works for U.S. Oil at its production plant in Iraq. Tyrone has been with U.S. Oil for fifteen years and has always received excellent evaluations. Tyrone applies for a promotion with U.S. Oil to a supervisory role but is not hired for the position. The person hired for the position has been with the company for only two years and is much younger than Tyrone, who is forty-five. Can Tyrone sue U.S. Oil under the Age Discrimination in Employment Act, even though he is not working within the United States? a)Yes, Tyrone can, because employees working abroad for U.S. employers are protected under the Age Discrimination in Employment Act. b) No, Tyrone can’t, because any lawsuit brought by Tyrone would have to be under Iraqi law. c) No, Tyrone can’t, because employees working abroad for U.S. employers are not protected under the Age Discrimination in Employment Act.arrow_forward
- The Client: Darius Williams, 44, is a single father with three-year old twin boys, who just lost his job as a Finance Analyst. He was employed for nine (9) years with Vroom Finance, a vehicle financing company. Management decided to restructure the company to cut costs and stay competitive. As a result, Darius, along with seven (7) other employees were made redundant. On his exit from Vroom, he received a severance package that included the following: USD $45,496 in cash in accordance with the severance laws in the country Proceeds of USD $19,775 from the company pension plan. If he decides to take cash, he will be taxed 25% by the government. The other alternative is to roll the funds into a new pension plan without penalties or taxes. He now has one month to decide. Three (3) months of health insurance. There are two weeks of coverage left. Three months of life insurance, with the option to continue the plan as an individual. He now has one (1) month to decide. Although losing his…arrow_forwardThe Client: Darius Williams, 44, is a single father with three-year old twin boys, who just lost his job as a Finance Analyst. He was employed for nine (9) years with Vroom Finance, a vehicle financing company. Management decided to restructure the company to cut costs and stay competitive. As a result, Darius, along with seven (7) other employees were made redundant. On his exit from Vroom, he received a severance package that included the following: USD $45,496 in cash in accordance with the severance laws in the country Proceeds of USD $19,775 from the company pension plan. If he decides to take cash, he will be taxed 25% by the government. The other alternative is to roll the funds into a new pension plan without penalties or taxes. He now has one month to decide. Three (3) months of health insurance. There are two weeks of coverage left. Three months of life insurance, with the option to continue the plan as an individual. He now has one (1) month to decide. Although losing his…arrow_forwardThe Client: Darius Williams, 44, is a single father with three-year old twin boys, who just lost his job as a Finance Analyst. He was employed for nine (9) years with Vroom Finance, a vehicle financing company. Management decided to restructure the company to cut costs and stay competitive. As a result, Darius, along with seven (7) other employees were made redundant. On his exit from Vroom, he received a severance package that included the following: USD $45,496 in cash in accordance with the severance laws in the country Proceeds of USD $19,775 from the company pension plan. If he decides to take cash, he will be taxed 25% by the government. The other alternative is to roll the funds into a new pension plan without penalties or taxes. He now has one month to decide. Three (3) months of health insurance. There are two weeks of coverage left. Three months of life insurance, with the option to continue the plan as an individual. He now has one (1) month to decide. Although losing his…arrow_forward
- BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage LearningEssentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage LearningAccounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
- International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education