Discussion 2 legal analysis

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Business Finance

Description

  • 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 order?
    • 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.

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Explanation & Answer

Attached.

Running Head: LEGAL ANALYSIS

1

Legal Analysis
Student Name:
Institution Affiliation:
Date:

LEGAL ANALYSIS

2

The employer is liable for the order that the friend made on the clients. This is because
they were responsible for hiring the friends to transact businesses on the behalf of the
organization. I will be responsible for their actions and every transaction in the business they
make. This i...


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