the clip below, in which one person believes they are partners and the other
believes it is an employer / employee relationship. Agents may bind the
principal in a number of ways. When you are reviewing the video, consider
whether the intentions / understanding of each party make a difference, and then
respond to the discussion question below.
As a small-business owner, you are faced with rising
costs, particularly employment costs, insurance, et cetera. So, you decide to
hire some friends and pay them as they work, rather than go through the expense
and procedure of bringing in “actual” employees. Your friends wear the business
uniform, deal with vendors and customers, and tell friends and family that they
work for the business. One friend / employee orders way too much from a vendor.
The vendor has dealt with the person numerous times; in fact, the person has
been ordering from the vendor for months.
- Since the person who ordered was not an ”employee,” but
a friend you hired, are you liable to pay for the improper
- Discuss the implications of agency that apply in this
situation, and describe at least one (1) way the company may be able to cancel
or return the order in question.
- Be sure to support your legal analysis with concepts and
definitions from the reading.